Google faces an antitrust investigation by the Department of Justice

The company is currently prepping the Pixel 4 line, which could feature Google’s Project Soli technology. This is a radar-based system that tracks the minute movements of the hands and would allow Pixel users to control the handset through the use of subtle hand gestures. Google has already released an actual photo showing part of the device’s rear panel even though the new models aren’t expected to be unveiled until October.

Google generated revenue of $38.8 billion during Q2, up 19.3% year-over-year. Operating profits rose 16% on an annual basis to $10.4 billion. The company spent $3.62 billion to acquire traffic during the three month period, up from the $3.47 billion it shelled out during Q2 2018. As a percentage of Google’s advertising revenue, these costs actually declined to 22% from 23% during the same period a year ago, good news for the company. Paid clicks on Google sites rose 28% year-over-year, but growth slowed to 6% compared to this year’s first quarter. CFO Porat noted that YouTube had strong revenue growth. “YouTube was again the second largest contributor of revenue growth, and [we’re] really pleased with the ongoing momentum that we’re seeing here,” the executive said. A decline in Google’s overall growth rate last quarter was blamed on YouTube, but it appears as though the streaming video site was able to turn things around during the three months from April through June.

The second-quarter earnings report seemed to cheer investors. After the 4 pm EDT close of the U.S. markets, Alphabet shares (GOOG-NASDAQ) soared $93.67 or 8.3% to $1,225.79.