After Alphabet reported its strong performance for this past quarter, the company's stock has soared in after-hours trading. Powered by YouTube and mobile ad revenue, Alphabet has delivered on its promise to successfully restructure the complex organization. With earnings of $5.73 per share, the company's earnings have bested Wall Street expectations and left investors satisfied. After-hours trading pulled Alphabet Inc Class C stock up a remarkable 11.02%, indicating the implementation of the new company's practices is pleasing not only Google's bottom line but also stock owners. Class A stock experienced similar growth, with a rise of over 9%.
Alphabet's CFO, Ruth Porat, has been praised for offering increased transparency which is likely to have also played a role in today's jump in valuation. "Our Q3 results show the strength of Google's business, particularly in mobile search. With six products now having more than 1 billion users globally, we're excited about the opportunities ahead of Google, and across Alphabet," said Porat. These numbers were sure to appease investors, and amount to an overall positive day for Google. It is also reassuring for Alphabet, which houses a number of smaller companies which do not generate even a fraction of the revenue Google does. These "moonshot" projects were previously under Google's umbrella and the Alphabet restructuring allows for a more efficient way to manage these companies.
Overall, Alphabet was able to increase revenues by 13%, despite an 11% decrease in Google's cost-per-click, which represents the money its ad business generates for every banner clicked. With YouTube and its ad business constituting the largest growth for the company, Porat described the changing methods in how Google is handling these money makers, saying, "Revenue growth really reflects continued improvement in ad formats and delivery." Strong stock performance can provide a general measure by which to judge a company's success. Alphabet's earnings reports struck a positive note with shareholders, and that bodes well for the company's future as head of Google and its radical projects. It also confirms the benefits the tech giant's decision to restructure itself have brought. Google is living up to and exceeding expectations, suggesting other top industry players have worthy competition.