Google parent Alphabet's earnings smash forecasts

Google's 44-year-old India-born CEO Sundar Pichai received almost $200 million (roughly Rs. 1,286 crores) in compensation last year, double the amount he got in 2015.

It is clear that advertising is the main money maker, after it posted advertising revenues of $21.41 billion (£16.5bn), or around 87 percent of Alphabet's total revenues.

At least seven analysts hiked their price targets on Alphabet, including those at Jefferies, RBC Capital, Instinet-Nomura, Stifel, Cowen & Co., UBS and BMO Capital Markets. And that momentum showed up today in Alphabet's first quarter earnings. Its earnings per diluted share increased from $6.02 to $7.73 per share.

Alphabet Inc. GOOGL just released its first-quarter fiscal 2017 financial results, posting earnings of $7.73 per share and revenues of $24.506 billion.

Alphabet stock is up $43.6, or nearly 5%, to $935.04, in late trading.

Google's parent Alphabet has recorded more stunning growth in both profits and revenues, helped once again by its strong performance in the advertising market.

Alphabet's operating profit margin rose by a point to 27%.

Cloud services continue to fuel the company's growth - it reported that its e-commerce business is still growing, and its video streaming platform is starting to generate significant revenue.

But the falloff in video ad revenue was a concern for investors, after a controversy that erupted last month when marketers discovered that their commercials appeared in extremist hate-speech videos on YouTube.

Alphabet said Google Properties revenues rose to $17.4 billion, while Google Network Members' properties revenues rose to $4 billion.

The company continues to sink money into its "Other Bets" division, which includes self-driving vehicle technology Waymo, which delivered a loss of $855 million but increased its revenue from US$165 million in Q1 2016 to US$244 million in Q1 2017.

These results were also the first since Microsoft completed its acquisition of professional networking site LinkedIn, which Microsoft said contributed 975 million dollars to their total revenue.

Paid clicks are where advertisers only pay when a user clicks their ads, increased by 44%.

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