Alphabet (GOOG) released its third-quarter 2021 results on Oct. 26. Alphabet’s third quarter earnings and revenue saw strong increases during the quarter, beating market expectations. Pre-market today, GOOG stock was trading slightly down by 0.75%.
Better-than-Expected Earnings and Revenue
The positive financial news for Alphabet’s third quarter is due, in part, to increased searches and subsequent advertising revenue on Google Search. The business unit brought in $37.9 billion during the third quarter, representing a growth of 44%. International trade reopening and increased travel-related searches gave Google Search a boost during the quarter as well.
Apple's New Privacy Features
The company did note in an earnings call that Apple's new privacy features caused a “modest impact on YouTube revenues,” according to CFO Ruth Porat. Many companies have been navigating their way through these privacy changes, which Apple made to iOS 14 this year.
An “AI-first Company”
“Five years ago, I laid out our vision to become an AI-first company,” Alphabet and Google CEO Sundar Pichai remarked. “This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners … And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organizations collaborate and stay secure.”