Alphabet shares down 5% after earnings fall short
Google and YouTube owner, Alphabet reported both earnings and revenues that were lower than analysts had expected.
The $7 billion revenue from YouTube in the quarter was lower than the $7.4 billion expected, and highlighted the advertising pressure currently facing companies.
(Video Transcript)
Alphabet shares drop
Alphabet, which owns the Google business, saw its shares fall 5.1% in extended trading after it missed analyst expectations on both the top and bottom lines, hit by a fall in income from advertisers who are cutting costs.
Total growth of 6% marked the weakest period of expansion since 2013, other than one period during the pandemic.
These are the numbers: earnings per share of six cents over the dollar level. We had been looking at $1.28. So that was a big negative for the company. Revenue also came in shy of the estimates of $71.3 billion. We got just over $69 billion for Alphabet.
And look what damage that did to shares yesterday, not too far away from the recent lows we saw back on the 13th of October - all the way down at $95.07, closing at 9794 on the trading day yesterday.
YouTube, Google Cloud
YouTube advertising revenue was $7 billion. We'd been looking for $7.4 billion expected. So that's short, and this just highlights the problems that consumers are having. And Youtube uses a lot of advertising now as we all know when using Youtube channels unless you pay for the service you do get a lot of adverts in your face.
Google Cloud revenue came in at $6.9 billion. We had been looking for $6.69 billion. That's a touch better than expected and acquisition costs were on the way down.
But the net effect of all this was a drop at the close of yesterday's session, all-sessions on the IG platform, down 5.1% as at the close last night.
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