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Alphabet trumps Amazon on earnings day

Credit: Reuters Studio
Published on July 26, 2019 - Duration: 01:34s

Alphabet trumps Amazon on earnings day

Alphabet and Amazon earnings came out late Thursday, and this time the bragging rights went to the Google parent firm.

Julian Satterthwaite reports.

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Alphabet trumps Amazon on earnings day

Earnings out late Thursday (July 25) from Alphabet and Amazon.

Bragging rights go to the Google parent company this time.

Alphabet shares up about eight percent in after hours trade.

That after second-quarter revenue jumped by 19 percent to almost 39 billion dollars.

The numbers eased investor concern over growth prospects for the search giant.

In the previous quarter it posted a 1 billion dollar earnings miss, sparking a big sell-off in the shares.

A jump in revenue from cloud computing among the pluses this time.

There was a much more mixed picture at Amazon.

The online retailer posted its first profit miss in two years.

It also said income would slump in the current quarter.

Rising costs are to blame.

Amazon is ramping up spending on one-day delivery.

It now has 100 million subscribers to its Prime service, which offers fast shipping and a raft of online content.

Now it wants to stay ahead of rivals like Walmart, which offer two-day delivery without a subscription.

Amazon says the effort is paying off.

Sales up by a fifth to over 63 billion dollars in the second quarter.

Investors seem to be focused on profits though, and those only edged higher.

Up to 2.6 billion dollars, and short of forecasts.

Amazon shares fell one percent after the numbers.

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