Alphabet, Google’s parent company, is spending like it is beginning to prepare for life after advertising.
Currently, Alphabet makes nearly 90 percent of its money from selling advertising on the internet, and gobbles up heaps of data about its users to help marketers target those ads more effectively.
But a close reading of Alphabet’s financial results for the first quarter of 2018, which were announced on Monday, showed that the Silicon Valley giant is accelerating its efforts to diversify into other businesses.
Google owner Alphabet reports 84% rise in profits despite privacy concerns
Google owner Alphabet shrugged off mounting concerns over privacy on Monday to report an 84% rise in profits for the last quarter.
The results eased concerns that investment in new ventures beyond its core search business was undermining Alphabet’s outlook. There also were no immediate signs that rising global privacy concerns would affect profits.
Google parent Alphabet’s profits bounce to an all-time high
Google, which dominates online advertising, continues to thrive amid escalating threats of regulation in Washington and a wider backlash against Silicon Valley and widespread data collection.
In the first quarter, Google parent company Alphabet's net income grew by 73 percent, totaling about $9.4 billion. Revenue rose 26 percent to $31 billion from $25 billion last year, beating analyst estimates. Alphabet's stock climbed upward nearly 1 percent in aftermarket trading.