Alphabet's Google joins rival Facebook in mobile-ad surge — MarketWatch First Take

Jul 31, 2016, 00:45

Other large investors recently modified their holdings of the company. It's the second consecutive quarter in which losses have deepened.

The tech giant's Android operating system dominates the smartphone market with a share of around 80 percent, which enables Google to offer search and other services to handset users. The rise follows a 17% rise in first-quarter revenues.

Brian Wieser, an analyst with Pivotal Research Group, wrote in an investor note this month that Google and Facebook "are unambiguously the hegemonic players in digital advertising". Finally, Chemung Canal Trust Co. raised its stake in Alphabet by 7.8% in the fourth quarter.

The stock increased 3.33% or $25.5 on July 29, hitting $791.34. The shares were sold at an average price of $716.51, for a total transaction of $23,882,711.32.

There are a few things to keep the company's owners awake at night. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link.

Google CEO, Sundar Pichai attributes the exciting video market behind Google's recent financial success. The disclosure for this sale can be found here. The analyst said his bull case on Alphabet remains given the "strong" revenue growth driven by mobile and YouTube, the company's cost discipline, better optimized capital structure and returns to shareholders, and the stock's attractive valuation. (NASDAQ:GOOG) traded 3.07% higher at $768.79.

The idea of buybacks is to reduce the supply of a company's stock. $1001 is the highest target while $670 is the lowest. Facebook has defined and shaped its advertising business to become profitable and extract $6.4 billion revenue, which is still meager when compared to the Alphabet. The company reported $8.42 earnings per share (EPS) for the quarter, beating the Zacks' consensus estimate of $8.03 by $0.39. The operating margin expanded more than 50 basis points from a year ago, resulting in operating income of $6 billion.

However, to further bolster its advertising efforts - the key source of revenue for the company - its is now introducing machine learning in the mix through products like its own bots and voice-controlled Assistant. The Firm holds interests in Google Inc.

But it appears Google is haemorrhaging money in what it called "Other Bets", including the work of its mysterious X Labs, where the company is working to solve future problems in everything from health and space communications to self-driving cars.

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