Alphabet gains 4% postmarket as Q2 near-miss dodges investor fears (NASDAQ:GOOG)

Sean Gallup/Getty Images News

Alphabet is up slightly after hours – (NASDAQ:GOOG) +3.5%(NASDAQ:GOOGL) +3.5% – despite a narrow miss of estimates that apparently assuaged some investor fears after the gloom cast over the Internet name sector from Snap’s results.

Revenues grew 12.6% to $69.69B, just shy of expectations for $69.8B, with strength in Search and Cloud. As with other tech names, it’s seeing foreign-exchange challenges from a strong dollar: in constant currency, revenues would have been up 16%.

Operating income ticked up slightly, to $19.45B from $19.36B, though operating margin fell to 28% from a year-ago 31%.

Net income fell to $16B from a year-ago $18.53B. In per-share terms, the company made $1.21 vs. expectations for $1.27.

Traffic acquisition costs rose 11.8%, to $12.2B. Revenue ex-TAC ​​came in at $57.47B.

Revenue breakout: Google Search and other, $40.7B (up 13.5%); YouTube ads, $7.34B (up 4.8%); Google Network, $8.26B (up 8.7%); Google other, $6.55B (down 1%); Google Cloud, $6.28B (up 35.6%); Other Bets, $193M (up 0.5%).

Operating income by segment: Google Services, $22.8B (up 1.9%); Google Cloud, -$858M (vs. prior -$591M); Other Bets, -$1.7B (vs. prior -$1.4B).

The company also hired up somewhat more than expected, with headcount now just over 174,000 vs. a forecast of 168,500.

Conference call to come at 5 pm ET.

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