Alphabet beats analysts' estimates for Q2 sales and ad revenues

Alphabet's second quarter earnings fell short of analysts' estimates despite better-than-expected topline growth.

But the internet search giant's advertising revenues printed ahead of the consensus, sending the shares higher in after-hours trading.

Chief executive officer, Sundar Pichai, attributed Alphabet's performance to search and cloud.

"The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we'll continue to invest responsibly in deep computer science for the long-term."

Net income for the quarter shrank by 13.62% to roughly $16.0bn for earnings per share of $1.21 (consensus: $1.27).

The company's sales on the other hand jumped by 13% to $69.69bn (FactSet: $69.87bn) with those from advertising on Google increasing by 12% to $56.29bn.

Google cloud revenues were up by 36% alongside to $6.28bn.

Shares of Alphabet jumped by 4.98% to $110.25 in after-hours trading.