Alphabet increases the pace of growth
Our portfolio stock Alphabet increased its revenue by 62 percent and profit by 166 percent year-on-year in the second quarter. The advertising business, which continues to contribute the bulk of Alphabet's revenue, continues to run smoothly. Growth has been particularly strong at video subsidiary YouTube, which now contributes $7 billion to revenue, double the year-ago figure.
The cloud division , which has achieved around 50 percent growth, is still number 3 in the market behind Amazon (AWS) and Microsoft (Azure), but has significantly reduced its loss.
The profits of the platforms
At Alphabet, too, it is noticeable that profits are gushing ever more strongly. Last quarter, it was $18.5 billion in net income. The increase in profits with growing maturity of the platform model can be observed at all 5 major US platforms. In the first half of the year, the Big 5, i.e. Alphabet, Apple, Amazon, Facebook and Microsoft, together achieved around $150 billion in profits (Net Income). Assuming (conservatively) that the 5 companies are just as profitable in the second half of the year, this profit development would represent a tripling since 2016.

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