Shares of Alphabet Inc. (GOOG, Financial) (GOOGL, Financial) soared 8.27% to $1,225.80 and 7.93% to $1,226 in after-hours trading on Thursday after the company posted second-quarter results.
The Mountain View, California-based company posted non-GAAP earnings of $14.21 per diluted share, which was 20.9% higher than the prior-year quarter and beat analysts’ estimates by $2.88, producing a positive surprise of 25.4%. GAAP earnings per diluted share grew 213% to $14.21.
Further, GAAP net income grew 211.3% to $9.95 billion, and non-GAAP net income increased 13.1% to $9.2 billion. Operating income surged 201.5% to $9.2 billion for an operating margin of 24%. Non-GAAP operating income was up 13% to $9.2 billion for a non-GAAP operating margin of 24%.
Revenue grew 19.3% year over year to $38.94 billion, exceeding expectations by $730 million.
By segment, the other division recorded 39.7% sales growth to $6.18 billion. Google properties revenue increased 17.5% to $27.34 billion and the network members' properties division saw sales grow 9% to $5.27 billion.
Google also recorded changes in the following key metrics.
Charges for traffic acquisition costs increased 12.74% to $7.24 billion and made up 22% of total revenue from Google advertising.
Paid clicks on Google properties were up 28%. Cost per click declined 11%.
Alphabet's Class C and Class A shares are both above the 200- and 50-day simple moving average lines, but slightly below the 100-day line. The market capitalization was approximately $787.3 billion and $788 billion at close on Thursday following a 9% decline over the past year through July 25.
The following charts illustrate the trend in the share price of Alphabet over the past year.
Chart 1: Class C shares.
Chart 2: Class A shares.
The 52-week range is $970.11 to $1,289.27 for Class C stock and $977.66 to $1,296.98 for Class A stock.
The stock has a price-book ratio of approximately 4.10, a price-sales ratio of about 5.3 and a price-earnings ratio of roughly 22.9.
Despite having $121.06 billion in cash on hand and short-term securities as of June 30, Alphabet doesn’t pay a dividend.
Wall Street recommends buying shares of Alphabet with an average target price of $1,332.
Disclosure: I have no positions in any securities mentioned.
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