Alphabet’s third-quarter revenue fell short of market expectations, and EPS also came in below expectations. Although cloud performance was solid, the share price plunged more than 8% after the results were announced.
Alphabet announced its third-quarter results on 28 October U.S. time. Revenue for the quarter was $127.6 billion, an increase from the year-earlier period but below the $128.2 billion expected by the market.
Earnings per share (EPS) were $2.12, below $2.87 in the year-earlier period and the market expectation of $2.99. Net income was $26.2 billion.
Revenue for the 3 months ended 30 September, excluding payments to partners, was $111.2 billion, slightly below the market expectation of $111.3 billion.
Google Cloud revenue reached $30.7 billion, up 103% year on year and above the market expectation of $29.2 billion. Following the results, Alphabet’s Class A and Class C shares had both fallen more than 8% by the end of the day, breaking below the $300 level.
Technology stocks overall have struggled amid concerns about the profitability of AI investment. Results from Microsoft, Amazon and Intel are expected to influence market sentiment going forward.
According to a translated article by Forbes Japan, the assets of the company’s founders, Larry Page and Sergey Brin, are estimated at $267.3 billion and $246.1 billion, respectively.