>> Search engine giant Google's parent, Alphabet, reporting a 73% jump in profit in the first three months this year, thanks to soaring Internet ad sales. The latest quarter's profit of $9.4 billion, which largely exceeded estimates, were also thanks to a new accounting method that counts investments in start up's, such as Uber.
Reuter's reporter, Phiresh Daveh,>> Previously, they would wait till those shares in those company's are marketable, meaning that they can trade them, after and IPO or an acquisition. Now, Alphabet is recording the income from those investments, sort of their current value. Alphabet has warned investors with a big emphasis that there is going to be increased volatility in their earnings, has these startups go up and down.
And they change what they think the fair value estimate of those investments are.>> Google is the first among major internet advertising platforms to report earnings, following Facebook's data privacy scandal that broke in mid-March. Along with Facebook, the search engine is likely to face some impact on its business, as law-makers look to regulate the use of data and privacy protection.
The tech giant also faces challenges with cost in recent quarters, as it wraps up expensive new projects in cloud computing and hardware, at its core Google unit.