Maybe. In any event, Google beat Wall Street estimates on revenue and earnings and the stock was rising 8.10% to $1,228 a share Friday.
Here are three key things Google did really well in the quarter.
Operating Margins Up
Google's operating margin rose in the second quarter of 2019 to 23.5%, up from 18% in the last quarter. That's key as Google said in February that it was seeing rising costs, including those from headcount. Analysts revised downward their price targets, as the margin outlook had decreased on rising costs. Now, Google is managing its selling, general and administrative costs well. A rising margin is important because, if it stabilizes, Google then becomes intrinsically more profitable going forward.
Google Chief Financial Officer Ruth Porat said Thursday afternoon Youtube contributed the second highest revenue growth out of any segment for the search giant. The company doesn't report YouTube results, but RBC Capital Markets analyst Mark Mahaney estimates Youtube revenue was $20 billion in 2018, putting it on par with revenue from Netflix (NFLX) - Get Report . Plus, "we are building momentum with our subscription services, YouTube Music and YouTube Premium, now available in over 60 countries, up from five markets at the start of 2018," management said on its earnings call.
Google's cloud computing business isn't its strongest one, and its up against cloud giants Amazon (AMZN) - Get Report and Microsoft (MSFT) - Get Report . But Google did report a 14% upside surprise on cloud revenue, posting $8 billion, versus the $7 billion analysts had expected.
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