(Bloomberg) — Alphabet Inc. shares fell after second-quarter results resurfaced a worrying trend: The company’s costs are rising as it spends more to expand Google’s newer, fastest-growing advertising businesses.
The company reported sales, minus partner payouts, were $20.92 billion, in line with analysts’ consensus forecasts, but below some more bullish expectations. Estimates ranged from $20.55 billion to $21.61 billion, according to data compiled by Bloomberg. Profit was also hammered by a record antitrust fine from the European Union.
The main Google division generated revenue of $22.67 billion in the latest period, but 22 percent of that was paid out to partners as traffic acquisition costs, also known as TAC. A year earlier, TAC was 21 percent of Google revenue.
Most of Google’s growth comes from mobile search ads, YouTube marketing spots and automated marketing called programmatic campaigns. The company has to share more of the money from those ads than it does with its original web search marketing slots.
“Growth in TAC accelerated for the third straight quarter, suggesting rising costs of future ad dollars,” said James Cakmak, an analyst at Monness Crespi Hardt & Co.
Alphabet shares fell as much as 3.5 percent after closing at $998.31 in New York.
Chief Financial Officer Ruth Porat said the company expects TAC for Google properties such as Search and YouTube to continue to increase, suggesting margins may shrink. She said the company is

 

(Bloomberg) — Alphabet Inc. shares fell after second-quarter results resurfaced a worrying trend: The company’s costs are rising as it spends more to expand Google’s newer, fastest-growing advertising businesses.
The company reported sales, minus partner payouts, were $20.92 billion, in line with analysts’ consensus forecasts, but below some more bullish expectations. Estimates ranged from $20.55 billion to $21.61 billion, according to data compiled by Bloomberg. Profit was also hammered by a record antitrust fine from the European Union.
The main Google division generated revenue of $22.67 billion in the latest period, but 22 percent of that was paid out to partners as traffic acquisition costs, also known as TAC. A year earlier, TAC was 21 percent of Google revenue.
Most of Google’s growth comes from mobile search ads, YouTube marketing spots and automated marketing called programmatic campaigns. The company has to share more of the money from those ads than it does with its original web search marketing slots.
“Growth in TAC accelerated for the third straight quarter, suggesting rising costs of future ad dollars,” said James Cakmak, an analyst at Monness Crespi Hardt & Co.
Alphabet shares fell as much as 3.5 percent after closing at $998.31 in New York.
Chief Financial Officer Ruth Porat said the company expects TAC for Google properties such as Search and YouTube to continue to increase, suggesting margins may shrink. She said the company is

 

Equinix has added its New York and London data centers to the list of sites that will connect to the new transatlantic submarine cable system being built by the Irish operator Aqua Comms.

The post New Submarine Cable to Connect Equinix Data Centers in New York, London appeared first on Web Hosting Talk.

 

Equinix has added its New York and London data centers to the list of sites that will connect to the new transatlantic submarine cable system being built by the Irish operator Aqua Comms.

The post New Submarine Cable to Connect Equinix Data Centers in New York, London appeared first on Web Hosting Talk.

 

Equinix has added its New York and London data centers to the list of sites that will connect to the new transatlantic submarine cable system being built by the Irish operator Aqua Comms.

The post New Submarine Cable to Connect Equinix Data Centers in New York, London appeared first on Web Hosting Talk.

 

SingleHop has acquired DataGram to expand its hosted private cloud services with additional data centers in New York and Connecticut. The financial details of the transaction have not been disclosed.

The post SingleHop Acquires Datagram to Expand Enterprise Cloud Reach appeared first on Web Hosting Talk.

 

SingleHop has acquired DataGram to expand its hosted private cloud services with additional data centers in New York and Connecticut. The financial details of the transaction have not been disclosed.

The post SingleHop Acquires Datagram to Expand Enterprise Cloud Reach appeared first on Web Hosting Talk.

 

ePages, a Hamburg, Germany-based ecommerce company, has opened an office in Brooklyn to better develop and support partners in North America, according to an announcement on Monday. This is the company’s first new office since opening London and Barcelona in 2006. Ecommerce is booming. According to an eBay Enterprise report…

The post German Ecommerce Provider ePages Opens New Office in New York appeared first on Web Hosting Talk.

 

ePages, a Hamburg, Germany-based ecommerce company, has opened an office in Brooklyn to better develop and support partners in North America, according to an announcement on Monday. This is the company’s first new office since opening London and Barcelona in 2006. Ecommerce is booming. According to an eBay Enterprise report…

The post German Ecommerce Provider ePages Opens New Office in New York appeared first on Web Hosting Talk.

 

Milestone reached for leading publisher of data-driven host evaluations and test results with the publication of 10 new cheap web hosting reviews.

New York, NY – April 2, 2015 – NCM Online — a leader in the publication of data-driven web host evaluations, testing, analysis, and rankings — has published its 50th low-cost web hosting service review.

Speed an…

The post NCM Online Publishes 50th Web Hosting Review appeared first on Web Hosting Talk.

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