Google owner Alphabet misses sales forecasts

Google owner Alphabet misses sales forecasts

Google owner Alphabet misses sales forecasts

Alphabet Inc (NASDAQ:GOOG) shares plunged in overnight trading in NY after the Google owner missed expectations with its first-quarter results.

The company reported overall revenue at $36.34 billion, which was shy of the $37.33 billion expected by Wall Street.

Alphabet shares fell by as much as 8.6 percent on Tuesday after reporting quarterly results and were down about 8 percent as of 3 p.m. ET.

Alphabet's expenses included a $1.7 billion fine from the European Commission for having placed anticompetitive advertising restrictions on websites using its searches.

Alphabet's first-quarter revenue missed analysts' estimates, sparking concern that advertisers are shifting some spending from Alphabet's Google subsidiary to digital rivals.

And while it isn't a big business for Google, the firm did mention that its smartphone operations encountered "year over year headwinds", meaning that it sold fewer handsets than it had in the year-ago quarter. "Google Cloud Platform remains one of the fastest-growing operations at Alphabet", she said. Excluding the fine, Alphabet's net income was $8.4 billion-still lower than its net profit of $9.4 billion in the same quarter a year ago. The growth moderated from last quarter as Alphabet had warned in February.

Several People Injured in Synagogue Shooting
Gavin Newsom offered their condolences to the Jewish community after a man opened fire Saturday at a synagogue outside San Diego. It's unknown how many people were inside the synagogue at the time of the shooting. "I moved here because safety was a factor.

Alphabet said paid clicks fell 9 per cent compared with the previous quarter. The company doesn't break out YouTube and cloud revenue, but the two are important sources of future growth. However, earnings per share climbed to $11.90 versus consensus forecasts of $10.53, excluding a €1.5 billion fine ($1.7 billion) by European competition regulators.

Michael Nathanson of analysts MoffettNathanson said that, as was the case with Facebook, Google's slower growth could be a blip rather than "some early flashing red light" that would force "conventional wisdom to be rethought". Google's other revenue, which includes the cloud business, rose 25 percent to $5.45 billion.

Google's search share is predicted to be even more dominant, by eMarketer's measure, accounting for 61.1 per cent of the $141.21bn global search market. Sales in Alphabet's "Other Bets" segment rose 13% to $170 million, but the division's operating loss widened by 52% to $868 million.

As usual, however, ads dominate the results, with a 15% rise in ad sales from a year ago, to $30.7 billion.

Analysts said the "lack of transparency" over the cause of the slowdown was frustrating for both them and investors.

Google is expected to unveil a raft of new hardware products and other services next week at its annual Google I/O conference for developers near its headquarters in Mountain View, California.

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