Alphabet misses revenue expectations as stock falls sharply

Summarised from 2 outlets · Updated 28 Oct, 21:44 · Archive

Alphabet reported third-quarter revenue of $127.58 billion, below the $127.97 billion analysts expected, sending its stock down 9 per cent.

Alphabet Inc. reported third-quarter results that exceeded internal expectations but fell short of Wall Street forecasts, triggering a sharp stock decline in after-hours trading. The company reported revenue of $127.58 billion, representing 25 per cent growth year-on-year, but analysts had anticipated $127.97 billion. Net income declined to $26.17 billion from $34.98 billion in the same quarter the previous year, with an $8.7 billion loss on equity investments affecting results.

Chief executive Sundar Pichai characterised the quarter as strong despite missing revenue expectations. He said the company is 'now on a half-trillion dollar revenue run rate' and highlighted momentum across the business driven by the company's 'deep full stack approach'. He also announced that Gemini, Alphabet's artificial intelligence assistant app, has reached one billion users, making it the fastest-growing product in Google's history.

Alphabet's shares fell approximately 9 per cent to $295.20 within an hour after the market closed on Wednesday. Earnings per share were reported at $2.12, though it was unclear whether this was directly comparable to analyst estimates of around $3.01 per share.

How it is being reported

• Google misses revenue expectations, Alphabet stock sinks in early after-hours tradingAlphabet Inc., Google's parent company, reported strong revenue growth in its third quarter, but it fell short of Wall Street expectations.Clickorlando · 28 Oct, 21:06
• Google misses revenue expectations, Alphabet stock sinks in early after-hours tradingAlphabet Inc., Google's parent company, reported strong revenue growth in its third quarter, but it fell short of Wall Street expectations.News4Jax · 28 Oct, 21:06

In this story: Alphabet Inc. · Google · Sundar Pichai · Mountain View · California · Wall Street

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