Alphabet Inc. reports record high quarterly profit

Web Desk BOL News

27th Oct, 2021. 07:39 pm

Alphabet Inc. and subsidiary Google (Image: Mint)

Google’s parent company Alphabet Inc. recently reported record breaking profits in the Q3 of 2021. Thanks to a spike in Google ads, the overall revenue of the subsidiary, Google skyrocketed in the third quarter of 2021.

The profits of the company are much higher than expected and way more understated as compared to the estimations, according to the giant conglomerate.

The company saw its profits soar as the revenue generated by Google ads exceeded its expectation. Due to the global pandemic, people have developed a habit of spending more time online, surfing through online stores. Previously, trust issues was the major drawback of online shopping, but gradually people overcame this fear and have now gotten used to shopping online. The reason behind the ad surge is also less visits on retail stores or in other words, brands spend less money on billboards now that they pay Google for the promotion of their respective brands.

The rise in featured ads on Google website has done wonders for Alphabet Inc. and its daughter company, Google. The revenue borne by Google ads rose by 41%, hitting $53.1 billion in the second-last quarter, while the company’s total quarterly revenue jumped to $65.1 billion, surpassing a whopping estimation of $63.3 billion.