Google's holding company Alphabet nearly tripled its net profit in the second quarter of 2021, while its revenue climbed 62%, to another record. Alphabet's quarterly revenue rose to $ 61.9 billion from $ 38.3 billion a year earlier. The consensus forecast for this indicator was $ 56.2 billion. Net income in April-June was $ 18.5 billion, compared with $ 7 billion in the same period last year. Earnings per share rose to $ 27.26 from $ 10.13, beating Wall Street's median forecast of $ 19.35. The company's management attributes Alphabet's strong quarterly results to increased user activity on the Internet, as well as a widespread increase in advertiser spending.
Service revenue of Google in the second quarter grew by 63%, to $ 57.07 billion, including the search service - by 68%, to $ 35.85 billion. YouTube advertising revenues jumped by 84%, to $ 7 billion, revenue of Google Cloud service - by 54% to $ 4.63 billion. The company's financial statements came as a pleasant surprise for us. We are raising our target price for the company's stock again from $ 2,900 to $ 3,300. The improvement in valuation is due to Alphabet's significant increase in market share in the mobile advertising market. The company's dominant position, coupled with a competitive cloud business, predicts two-digit annualized revenue and EBITDA growth over the medium term.
Alphabet's business is primarily focused on search, advertising, operating systems, cloud, enterprise and hardware products. The company generates revenue primarily by delivering online advertising. The company provides its products and services in more than100 languages and in more than 50 countries, regions, and territories.