Alphabet shares fell 7% after the publication of quarterly reports – Kommersant
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Alphabet’s third-quarter revenue was (.pdf) $76.69 billion, which is 11% more than in the same period a year earlier. This is the first double-digit revenue growth after four straight quarters. Net profit reached $19.69 billion (a year earlier – $13.9 billion), and earnings per share amounted to $1.55. All three figures exceeded expectations of analysts surveyed by FactSet.
Advertising revenues also increased – $59.65 billion compared to $54.48 billion for the same period a year earlier. YouTube’s advertising revenues were higher than analysts’ forecasts and amounted to $7.95 billion. As Alphabet CEO Sundar Pichai noted, daily views on the short video service Shorts, which competes with TikTok, have grown since the beginning of the year from 50 billion to 70 billion. The head of the company announced There are also innovations for Shorts, including the use of AI tools for video editing.
Meanwhile, investors paid attention to the financial results of the cloud technology division Google Cloud, which were below analysts’ forecasts. The division’s revenue for the quarter amounted to $8.41 billion, that is, 22% more than a year earlier, but lower than the $8.64 billion expected by analysts. This led experts to express concerns that Google could lag behind its competitors, which are actively developing cloud technologies. such as Amazon and Microsoft.
“Cloud computing is a more complex business than advertising, and one where Google faces stiff competition,” he explained to the newspaper. The Guardian Max Willens, senior analyst at Insider Intelligence, “The influence it has among AI startups may pay off in the long run, but for now it doesn’t help Google Cloud enough to satisfy investors.” Alphabet investors reacted specifically to Google Cloud’s performance. The company’s stock quotes fell by 7% after the end of the main trading session on the Nasdaq exchange. Since the beginning of the year, their growth has exceeded 55%.
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