Alphabet’s ad business is booming, but Google controversies continue to pile up

As expected, Alphabet's core advertising business continues to grow remarkably, with third-quarter earnings reporting far exceeding Wall Street analysts' forecasts, but quarterly earnings outlook is marginal, Or 21 per cent, to $ 33.7 billion, or $ 9.2 billion, or $ 13.02 per share.

Much of this growth comes from the advertising business of Google's subsidiaries. Ad revenue accounted for 86% of total revenue in the last quarter. However, Google is constantly investing in the cloud to compete with Amazon's AWS division and Microsoft's Azure. We are also constantly investing in hardware through Pixel phones, Chromecast devices, and an expanded home smart speaker line. Google's "Other Revenue" section generated $ 4.46 billion in revenue. This is a 30 percent increase over a year ago. Although last quarter's growth rate did not jump sharply by 37%, Google recently announced its new Smart 3 (XL) Pixel 3 phone and new smart home device on its home line.

Despite its success, Alphabet is one of the most controversial moments in history at present. Regulatory research has revealed that Google has made a lot of changes to Android and censorship, and that China is both politicians and the public.

Of course, these things will not have a big impact on your business yet. Immediate metrics such as Google's cost of acquiring traffic (i.e., the cost of using Google search as the default search engine for Apple's mobile Safari browser) are displayed in-line. Along with Facebook, Google controls the majority of online advertising businesses. However, the company has not been able to withstand the criticism and criticism that its efforts to bring search products censored in the past week into the Chinese market, information products include bias against US conservatives. YouTube does not have the ability to properly monitor the platform.

Google recently made a major change to its Android license agreement in July, following a dramatic antitrust decision by the European Commission, which imposed a fine of about $ 5 billion and bundled a mobile operating system Software that uses Chrome and Play Store together when licensing.

Google will charge mobile phone manufacturers an additional charge per device (up to $ 40 per device) to install the "Google Mobile Services" app set with the Play Store and access most of the existing Android mobile apps. Planning. However, if you agree to pre-install Chrome and Google Search, you may be able to reduce your commission.

I do not know how this affects your company's financials for some time, but it's reasonable to assume that Google will draw more money under the new contract. Effectively, the EU has determined that it is anti-competitive that Google will bundle Android with core services in an attempt to dominate the Chrome, Search and Play stores in the Android ecosystem. Now we need to charge money and give the phone company the opportunity to build or license the competition service. However, competitive services rarely exist and are as good as Google. Many Android handset makers can pay or cut deals to keep their jobs as usual.

Alphabet's continued financial growth is also a growing series of internal and external disputes, with the most recent New York Times reporting that Google paid $ 90 million to Android co-founder Andy Rubin for alleged sexual harassment . The allegations include a case in which Rubin was presumed to have forced another Google employee with an affair for oral sex in a hotel room in 2013. Google has claimed 48 people have been fired for sexual harassment in the last two years. None of them have been released.

Earlier this month, CEO Sundar Pichai publicly announced Project Dragonfly, which is seeking to reintroduce search and news products to the Chinese market that will meet the government's strict restrictions on freedom of information. Pichai told a group of people in San Francisco that it is important for China to "explore" how important markets are and how many users are.

Critics and activists, including company employees and resigners, protest this project, which may contribute to the Chinese government's authoritarian rules by indicating what information citizens have access to and their publicly expressed views. Google's prototype is known to connect people's online accounts with their phone numbers.

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