Google Parent Alphabet Sees Profits Treble

Google parent Alphabet's stock price leapt on Thursday after reporting stronger-than-expected results driven by gains in online advertising.

The internet giant said profits tripled in the second quarter from a year earlier to US$9.9 billion while revenues increased 19 per cent to US$38.9 billion.

Shares in Alphabet rallied some 8.6 per cent in after-hours trade on the report, which appeared to ease fears about slowing growth.

Also helping shares was an announcement that the company would spend an additional US$25 billion on stock buybacks.

Profits were sharply higher than the same period last year when Google was forced to pay a US$5 billion fine to settle antitrust actions in the European Union.

Google accounted for the lion's share of revenue and profits for the company with "other bets" – including its autonomous driving division Waymo and its life sciences and cybersecurity units – bringing in a modest US$162 million in revenue with an operating loss of US$989 million.

Meanwhile Amazon said on Thursday profits edged up to US$2.6 billion in the past quarter amid strong revenue gains for the US online giant.

Revenues rose 20 per cent to US$63.4 billion in the April-June period for the company, a dominant force in retail with its Prime subscription service.

"Customers are responding to Prime's move to one-day delivery – we've received a lot of positive feedback and seen accelerating sales growth," said chief executive Jeff Bezos. "Free one-day delivery is now available to Prime members on more than ten million items, and we're just getting started." (AFP)