Google’s new name is Alphabet and the company has announced that it earned a revenue of $18.7 billion during the third quarter and the earnings per share stood at $7.35. This is actually better than what stock market analysts had expected because they had placed the revenue expectation at $18.53 billion and EPS of $7.21. Google had posted a revenue of $16.52 billion and EPS of $6.35 for the third quarter last year.
The company has also announced that it will buy back $5 billion worth of shares starting the fourth quarter 2015.
Even with the fantastic results today, pressure is still on Google to improve its search business on mobile, curtail expenditure on moonshot type products and also explore monetization opportunities for its popular services like YouTube where it has not been able to make much progress.
The company has also to figure out a way to reverse the decrease in cost per click that has affected its search advertising business for a few years now. The amount that Alphabet has spent on R & D has touched record heights in this third quarter. The traffic acquisition cost increased from $3.3 billion to $3.6 billion when compared with the last year’s third quarter.