paper profit: Those beats were fueled not by actual money flowing into the company for ads sold on Google or any of Alphabet's GOOGL, 1.47%GOOG, 1.21% myriad other businesses, but rather paper profit on investments the company has made, according to Market Watch. It also ignores huge fines Google expects to pay the European Commission. Google's parent company beat analysts' quarterly earnings estimates by an average of about 27% last year, and never by less than 17.5% in any of the four quarters, according to Fact Set records. Companies were forced to begin counting unrealized gains on their investments every quarter in 2018, much to Berkshire Hathaway Inc. Alphabet which Google's founders seemed to form in Berkshire's image saw huge changes because of it In total, Google reported profit of 30.74 billion in 2018, and a hair more than 4 billion of that total came from net increases in the value of its investments, which are not fully disclosed. BRK.A, 1.22%BRK.A, 1.22%Chief Executive Warren Buffett's chagrin.
(news.financializer.com). As
reported in the news.
Tagged under paper profit, european commission topics.