Google's parent reports surge in profit on ad gains

Google parent company Alphabet reported Monday a stronger-than-expected first-quarter profit on higher advertising revenue.

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The search giant reported net income of $9.4 billion, up 73% from the $5.43 billion Alphabet earned during the same period last year. On a per-share basis, Alphabet earned $13.33 a share, compared with $7.73 a year earlier. Revenue jumped 26% to $31.15 billion.

The results beat Wall Street’s expectations. Analysts had projected per-share earnings of $9.28 and revenue of $30.29 billion.

Ad revenue, which comprises the bulk of the company’s top line, climbed to $26.6 billion from $21.4 billion. Traffic acquisition costs were $6.3 billion, up from $4.6 billion.

Alphabet’s financial results benefited from a change in accounting standards. The company recorded a $3 billion gain from other investments, including a large bet on Uber.

Shares of Alphabet rose 0.6% to $1,079.98 in after-hours trading.

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