附近上门

Morning Report: The $2.74 billion European Commission fine is a drop in the Alphabet revenue ocean.

Yesterday, Alphabet鈥檚 shares after the release of its Q2 revenue report, drawing attention to the $2.74 billion European Commission (EC) fine that weighed on its profit.

Follow 附近上门 News on &

In case you missed Google鈥檚 antitrust struggles, here鈥檚 a recap: In the past seven years, Google received against allegedly monopolistic tendencies, involving its Android operating system and its ad placement service AdSense. This time around, Google for promoting its shopping service and demoting those of its competitors in its search results.

However, when we look at (Alphabet is Google鈥檚 parent company) the $2.74 billion fine is a drop in the ocean. Though its operating margin dipped about when comparing 2016 Q2 and 2017 Q2, the company posted a increase in revenue (YoY). (The fine, of course, being a cost, didn鈥檛 impact the company鈥檚 revenue growth.)

Ruth Porat, Alphabet鈥檚 Chief Financial Officer of Alphabet, about the company鈥檚 continuous potential for growth: 鈥淲ith revenues of $26 billion鈥� we’re delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams.”

Alphabet has a diverse number of , properties and advertising revenues being the two main ones. Even though 鈥�,鈥� from venture capital to anti-aging research, are still running on , their performance have improved over the years. From our 附近上门 News analysis yesterday, though these investments may not amount to immediate profit, they may prove crucial for Alphabet鈥檚 future development.

A History of EC Fines

Alphabet is not the first US technology firm to endure such a large fine from the European Commission. The chart below shows a of EC fines on US tech behemoths.

Alphabet ranks second out of the tech giants charted above in the order of fine amount. The company lags only behind Apple, which by the commission to pay a huge chunk of back taxes to Ireland in 2016.

We shouldn鈥檛 worry too much about Alphabet鈥檚 share drop though, as it may only be temporary. If its staple (stable) revenue streams (Google mainly) operate as expected, Alphabet should recover pretty quickly.

From the :

Convoy raises $62M for trucking network

• , an on-demand service for connecting shippers and trucking companies, has raised $62 million in a Series B round. Y Combinator led the financing for the two-year-old, Seattle-based startup, with participation from Bill Gates, Mosaic Ventures, Barry Diller and others.

Facebook acquires Source3

• In an apparent move to bolster anti-piracy tools for content creators, Facebook is acquiring , provider of a platform for recognizing and managing intellectual property in user-generated content. New York-based Source3 previously raised about $4 million in venture funding.

VC funding looks strong, exits weaker

• The latest venture industry stats show new, big funds, big rounds, and other bullish indicators. But while that side looks healthy, the exit market is lacking, with a tepid IPO market and slow M&A pace. To help catch up on trends, 附近上门 News has aggregated our all of our second quarter reports in one place. In other news, we look at how Alphabet is curtailing losses in its 鈥渙ther bets鈥� projects.