Play Google’s Q3 Earnings Beat With These 3 Funds

Alphabet Inc. (GOOGL – Free Report) posted favorable earnings results in the third quarter. The online advertising service provider posted earnings beat for the quarter, as the tech giant continues to enjoy strength in the mobile platform.

Alphabet’s encouraging earnings results had a positive impact on the technology sector and boosted investors’ sentiment. Following the promising development, investing in technology mutual funds with a significant holding in the California-based company will be prudent.

Q3 Earnings in Focus

Alphabet’s non-GAAP earnings of $13.06 in the third quarter of 2018 surpassed the Zacks Consensus Estimate of $10.54. Also, earnings increased 11.1% sequentially and 36.5% year over year. Net revenues, excluding total traffic acquisition cost came in at $27.16 billion. Although total revenues rose 3.5% sequentially and 21.9% year over year, it missed the Zacks Consensus Estimate of $27.32 billion.

One of Apple’s key growth drivers is Accelerated Mobile Pages (AMP), which is being accepted by a number of publishers and sites across the world. Management is focused on driving mobile experiences and the company is well positioned to pick up strong intent-to-buy signals by studying mobile searches from its huge database.

YouTube remains a strong contributor, benefiting from growth in online video consumption. Moreover, Google platforms like Android, Chrome and Daydream continue to help it in drawing more users, and selling more ads.

Alphabet’s Earnings Beat: Boon for Technology Sector

Technology is now the best-performing sector year to date (YTD). The technology sector has jumped 6.5% YTD, becoming the best-performing sector on the S&P 500. In fact, the tech sector’s performance is better than the S&P 500’s decrease of 0.6%.

Along with Alphabet, strong earnings results by Amazon.com, Inc. (AMZN – Free Report) and Intel Corporation (INTC – Free Report) also supported the technology sector. The sector will be in the spotlight this week with Apple and Facebook reports expected to take total Q3 earnings up 23.6% on 12.1% higher revenues.