Alphabet Earnings Manage to Beat Big Expectations. The Stock Is Rising. - Barron's

jumped in late trading Tuesday, after the company smashed investor expectations, reporting record quarterly revenue.

CFO Ruth Porat attributed the company’s success to “elevated consumer online activity” and “broad-based strength in advertiser spend.” The company reported Search and other revenue of $35.9 billion, and YouTube ad revenue of $7 billion—both ahead of investor expectations.

“The numbers are crazy strong, across almost every segment of the business, and they’re accelerating,” RiverPark Funds investment chief Mitch Rubin said.

Aside from Alphabet’s ad business, Google’s Cloud computing segment reported over a 50% rise in second-quarter revenue to $4.6 billion.

That loss was significantly less than analysts expected, though Porat said the company continues to aggressively in the business.

Cloud computing, he said, is a high-margin industry, and if Google can flip its cloud segment toward profitability, it could boost the company’s bottom line.

“When you turn the cloud to profit, earnings at the company skyrocket,” he said.

Shares of Alphabet jumped in late trading Tuesday, after the company smashed investor expectations, reporting record quarterly revenue