Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Alphabet Stock Declines Following Earnings, Revenue Miss

Stock Markets Oct 25, 2022 04:29PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Alphabet (GOOGL) Stock Declines Following Earnings, Revenue Miss
 
GOOGL
-2.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Google parent company Alphabet's (NASDAQ:GOOGL) shares fell more than 6.5% after-hours following the publication of its third-quarter earnings, which saw it miss profit and revenue estimates.

The tech giant reported earnings per share of $1.06, $0.22 below the analyst consensus estimate of $1.28, while revenue for the quarter came in at $69.09 billion compared to the consensus estimate of $71.34 billion.

At the time of writing, Alphabet shares are trading below the $100 per share mark at over $97.

The company said its results in the quarter were impacted by foreign exchange headwinds.

“Our third quarter revenues were $69.1 billion, up 6% versus last year or up 11% on a constant currency basis. Financial results for the third quarter reflect healthy fundamental growth in Search and momentum in Cloud, while affected by foreign exchange. We’re working to realign resources to fuel our highest growth priorities," said Ruth Porat, CFO of Alphabet and Google.

Google Cloud revenue came in at $6.87 billion, while Google Services revenue was $61.38 billion. In addition, YouTube ads revenue in the quarter was $7.07 billion, while traffic acquisition costs were $11.83 billion.

The company's number of employees increased to 186,779 from 150,028 in Q3 2021.

"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. We are focused on both investing responsibly for the long term and being responsive to the economic environment," commented Sundar Pichai, CEO of Alphabet and Google.

Alphabet Stock Declines Following Earnings, Revenue Miss
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (9)
Tom Michaels
Tom Michaels Oct 25, 2022 7:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More manipulation, all lies.
Brad Albright
Brad Albright Oct 25, 2022 7:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All lies? Well, I guess that settles it.
Clayton Erickson
Clayton Erickson Oct 25, 2022 6:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Im not surprised. Although it's the market going to act like bad news is good news and think this is a signal that rates won't be risen any more ?
Casador Del Oso
Casador Del Oso Oct 25, 2022 6:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nasdaq up. Economy still strong. Interest rates...up we go@
Kris Jay
Kris Jay Oct 25, 2022 6:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oh-oh
Darren Kirsch
Darren Kirsch Oct 25, 2022 5:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And this too shall pass!
Daniel Moreno Martinez
Daniel Moreno Martinez Oct 25, 2022 5:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Neftlix told us about the exchange problems their earnings were increíble bad but the market shrug it off. let's see with the big goog
Jimmy Tsang
Jimmy Tsang Oct 25, 2022 5:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who making these expectations?? The one who made these estimates cannot even make this kinda profit, what credibility they have to make these over expected figures??
Eldrish eldoran
Eldrish eldoran Oct 25, 2022 5:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
missing expectations that much and income collapsing. still expectations had been revised down alot just like most companies before the release
Jimmy Tsang
Jimmy Tsang Oct 25, 2022 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stop over estimated the earnings especially when all these ibanks saying we are in recession, and keep over expect the numbers
Kris Jay
Kris Jay Oct 25, 2022 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
well if you're paying 17x to 21x earnings you're going to have expectations on earnings to increase at a rate which matches that.  so that is where the estimate comes from.  when it misses it shows the multiple is too rich.   as the entire market is right now, far above the 10 year average multiple, so there will be a year or two down which will average the 10 years to the more reasonable levels than 2020-2021
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email