Other products are more recognizably Google-y, however, and Alphabet's new earnings release shows off some impressive growth in areas beyond just ad money. Finally, McQueen Ball & Associates Inc. boosted its holdings in shares of Alphabet by 2.0% in the 2nd quarter. Microsoft Corp. also said yesterday that cloud revenues almost doubled.

AE Wealth Management LLC reduced its position in shares of Alphabet Inc (NASDAQ:GOOGL) by 9.9% in the third quarter, according to the company in its most recent 13F filing with the SEC. The company's stock had a trading volume of 5,826,990 shares, compared to its average volume of 1,520,000.

In its most recently completed quarter, traffic-acquisitions costs were $6.5 billion, or 24% of Google's advertising revenue, up 33% from the same period past year. The information services provider reported $9.70 earnings per share for the quarter, missing the Zacks' consensus estimate of $9.99 by ($0.29).

The company posted losses after dealing with a $9.9 billion charge that was related to the new USA tax law. Trump's tax changes are expected to be beneficial to the company in the long run.

It wasn't immediately clear what accounted for the profit shortfall, in particular whether the Google Cloud Platform unit was the issue. The operating loss attributed to the other bets has also shrunk year over year, from almost $1.1 billion to $916 million. Porat also referenced much higher marketing expenses for hardware and the cloud operation. The company has recorded an increase of 23% in the sales in 2017, to the 2016's revenue that was around $90 billion.

The vast majority of Alphabet's revenue continues to come from Google and its various business, most notably its advertising network, but the company's so-called "other bets" saw revenues rise from $262m (£183m) past year to $409m (£286m) in the last quarter.

This was boosted by a tax benefit of about $789mln under the new USA tax laws. State Street Corp raised its stake in Alphabet by 1.2% in the first quarter.

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Aggregate clicks on Google ads also beat estimates, rising 43%.

Fuelling that grow are the four million paying customers on Google's cloud-powered G Suite.

On the YouTube front, business was good, Pichai said.

Alphabet's "Other Bets", which include self-driving vehicle firm Waymo, Google Fiber, the Nest home devices unit and other businesses, logged an operating loss of $1.1 billion on revenue of just $262 million. Other Bets has continuously operated at a loss and GOOGL reported an operating loss of $812 million.For Q4, Wall Street consensus is projecting revenue of $355 million along with a larger operating loss of $940 million.

The cloud operations have widely divergent impacts on each company, however.

Google CEO Sundar Pichai delivers the keynote address at the Google I/O 2017 Conference at Shoreline Amphitheater, May 17, 2017, in Mountain View, California.

In an investor call, Zuck brushed this off as a short-term loss in the quest for more "meaningful interactions" in the long term.