Alphabet’s stock rallies as earnings show a resilient business

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Investors focus a lot on cloud growth at Google and its rivals. But there was a bright spot in Alphabet’s latest cloud results that may not get as much attention.

“Cloud profitability improved substantially,” noted CFRA analyst Angelo Zino. He flagged that operating income for the segment more than doubled to hit nearly $2.2 billion. That was above the $2.0 billion FactSet consensus estimate.

In all, that translated to a 17.8% margin for Google Cloud, almost double the operating margin from a year before.

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