The new holding company for Google is Alphabet Inc (GOOGL.O), introduced its first share buyback. It beat the profit forecast by Wall Street. The gain comes to a first time highest ever level due to its video advertising and solid progress in mobile industry. The company’s profit and revenue both increased well above the forecast with unexpected buyback. Wall Street is now betting on the company’s further growth.
One of the main reasons for Google to have steady growth is due to its position in the overall advertising space. They have the right programmer to steadily grow at a random pace and to be dominant in those spaces. The results have come at the right time when the company is shifting from desktop to mobile industry in which ads revenue are comparatively less and is also facing tough competition from its rivals such as Facebook Inc.
The company executive’s revealed mobile search being the main reason for the strong results as mobile traffic has easily surpassed desktop traffic worldwide. The shares rose almost 9 percent in the afterhours taking the company’s market value to $500 billion, only second to Apple Inc. which is still the most valuable company.
It is not just Google that had good results but several other technology companies also had their part of profit such as Microsoft Corp and Amazon.com. Analysts from the Wall Street welcomed Alphabet’s performance. This comes at a time when most technology companies are facing high pressure from investors to give back more cash to them.