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Jacob Sonenshine: Three things to know about Google's earnings and beat. First thing, really important. Margins, operating margins went higher quarter over quarter. 23.5% for Google on the operating margin. Last quarter, it was 18% so that's important. In 2019 Google had to increase the head count and had some elevated SGNA expense. Getting that under control, which they did in this past quarter, helped the operating margin going forward. That's going to be really, really good for this stock. Number two, Youtube. Google doesn't report youtube, but Ruth Porat, chief financial officer said that was the second largest, the second best growth revenue segment for Google in the quarter. Yeah, I have a feeling guys, if Google reported, YouTube might push the stock up a little bit. They don't. Nice segment for them right now. Third thing, Cloud. 8 billion in revenue coming in and beating 7 billion expected. That's a nice beat. They're up against Microsoft and Amazon. I think they'd like to be a little bit better in Cloud, so that segment for the quarter was pretty positive. All right guys.

If Google (GOOGL - Get Report) reported Youtube results, would the stock immediately go higher?

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. 

YouTube

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. 

Cloud

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.