Google Beats Sales Estimates With Rebound in Ad Spending
- Google joins Facebook, Pinterest, Snap in benefiting from ads
- Cloud revenue growth also came in ahead of expectations
This article is for subscribers only.
Alphabet Inc. returned to growth in the third quarter after a decline in the previous period, fueled by digital advertising that has rebounded along with the American economy. The shares rose about 7% in extended trading in New York.
The Google parent reported third-quarter revenue, minus the cost of distribution deals for its search engine, rose 15% to $38 billion. While that was slower than the pace of growth a year ago, it was a stark change from the 2% drop in the second quarter and better than what analysts were expecting. YouTube, the fastest-growing part of Google’s ad business, brought in $5 billion, 32% more than last year.