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Alphabet Stock Sinks After Earnings, Revenue Missed by Investing.com


© Stocksak. Stock of Alphabet (GOOGL), Declines after Earnings and Revenue Miss

By Sam Boughedda

After publishing its third quarter earnings, Alphabet, Google’s parent company, fell 6.5%.

The tech giant earned $1.06 per share, $0.22 lower than the analyst consensus estimate. Meanwhile, revenue for the quarter was $69.09 million, compared with the consensus estimate at $71.34 billion.

Alphabet shares are currently trading at less than $100 per share, and more than $97 at the time of writing.

According to the company, foreign exchange headwinds had a negative impact on its quarter-end results.

“Our third quarter revenues were $69.1 billion, up 6% versus last year or up 11% on a constant currency basis. The third quarter financial results reflect healthy fundamental growth and momentum in Cloud. However, foreign exchange effects had an impact on them. We’re working to realign resources to fuel our highest growth priorities,” said Ruth Porat, CFO of Alphabet and Google.

Google Cloud revenue was $6.87 billion while Google Services revenue reached $61.38 billion. YouTube ads revenue was $7.07 Billion, while traffic acquisition costs were $11.83 Billion.

The company’s employee count increased to 186.779 from 150.028 in Q3 20201.

“We’re sharpening our focus on a clear set of product and business priorities. Product announcements we’ve made in just the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts. Sundar Pichai (CEO of Alphabet, Google) stated that we are focused on both investing responsibly over the long-term and being responsive to economic conditions.

News Source and Credit

Stocksak Editorial

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