Alphabet trounces profit estimates as costs come into check

Alphabet has reported expenses from its Google search business were growing more slowly and that revenue from advertising and cloud computing rose faster than analysts anticipated, boosting its earnings beyond Wall Street targets and pushing shares up 3.6 percent after hours.

Google’s dominance in online advertising has been challenged this year by the antitrust battle over its Android mobile software and other regulatory actions.

But the issues have yet to halt Google, which has grown quarterly revenue at least 20 percent year-over-year for two straight years.

“There was never a question about Google’s dominance of a buoyant digital ads market,” said analyst Richard Kramer of Arete Research.

The company has seen costs rise and profit margins dip as more searches and ads get shown on mobile devices, where Apple Inc and other firms charge fees to distribute Google search on their devices and apps.