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Alphabet Inc. (NASDAQ: GOOGL) reported third-quarter 2018 results after markets closed Thursday afternoon. For the quarter, the search giant posted adjusted diluted earnings per share (EPS) of $13.06 on revenues of $33.74 billion. In the same period a year ago, the company reported EPS of $9.57 on revenues of $27.77 billion. Analysts were looking for EPS of $10.42 and revenues of $34.04 billion.

During the quarter, Traffic acquisition costs (TAC) to Google Network Members and distribution partners totaled $3.43 billion, up from $3.10 billion in the same period last year. Total TAC as a percent of Google advertising revenues was 70% for the quarter, down from 71%.

Paid clicks on Google properties increased 62% year over year and 10% quarter over quarter. The cost-per-click on Google properties decreased 28% year over year and 7% quarter over quarter.

In terms of its segments Alphabet reported:

• Google advertising revenues totaled $28.95 billion, up 20.3% year over year.
• Google other revenues totaled $4.64 billion, up 29.2%.
• Other Bets revenues totaled $146 million, up 24.8%.

Ruth Porat, CFO of Alphabet and Google, commented:

Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day. Alphabet revenues were $33.7 billion, up 21% versus the third quarter of 2017, and we remain focused on delivering on the opportunities we see.

Shares of Alphabet closed at $1,103.59, with a consensus analyst price target of $1,387.31 and a 52-week range of $984.00 to $1,291.44. Following the announcement, the stock was down over 2% at $1,074.68 in the after-hours session.