Google parent Alphabet shares lifted on a stronger-than-expected earnings report for the past quarter, as the tech giant's results eased concerns over huge fines imposed by the European Union for antitrust actions.
As for the EC fine, the European Commission charged Google $5.07 billion for breaching EU antitrust rules by imposing restrictions on Android device makers and network operators "to cement its dominant position in general internet search".
Pichai was also circumspect about the company's cloud business, so as not to spoil expected announcements at Google Cloud Next '18, a conference focused on the Google Cloud Platform that opens in San Francisco on Tuesday.
"I'm confident that we can find a way to make sure Android is available at scale to users everywhere", Google's chief executive, Sundar Pichai, told investors. Including the fine, Alphabet's EPS was $4.54.
Areas outside of Google's core ad business saw the strongest growth. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $9.45 per share. "Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet".
The bulk of Alphabet's revenue continues to come from advertising, which amounted to $28bn for the quarter, or roughly 88 per cent of sales.
Google has more than 95 percent of share of search in Europe, according to the European Commission's complaint against the company. Google properties revenue jumped 26 per cent to US$23.3 billion. It is gaining ground on Amazon, the ecommerce giant that is the world's second...
The quarterly growth rate of what the company pays ad partners, called traffic acquisition costs, fell for the first time in three years, which Atlantic Equities analyst James Cordwell described as the "most impressive" piece of the results. Google booked that charge in the same quarter a year ago - and posted a $3.5 billion profit.
Shares of United Technologies dipped 0.8 percent, while 3M dropped 2.2 percent, despite both industrial companies beating quarterly profit expectations.
Although advertising remains the key driver of revenue, Google has been moving into cloud computing services for businesses, artificial intelligence and devices, including its Pixel smartphones and notebook computers.
Pichai called out notable cloud wins and customers during the call, include PwC, Domino's Pizza, SoundCloud and Target.
Other Bets, the home of Google's riskier, experimental businesses, lost US$732 million in the quarter, versus a loss of US$633 million in the same period a year earlier.