Alphabet’s Earnings Crushed. The Stock Is Wobbling.
Google’s parent Alphabet reported strong third-quarter earnings.
Denis Charlet/AFP via Getty Images
Shares of Google’s parent
wobbled in extended trading Tuesday even after the technology giant soundly beat expectations for earnings and revenue.
Alphabet (ticker: GOOGL) reported net income of $18.94 billion, or $27.99 a share, for the third quarter. Revenue jumped 41% year over year to $65.12 billion. Wall Street’s consensus estimate called for earnings of $23.73 a share and revenue of $63.53 billion, according to FactSet.
Alphabet stock was down 2.2% to $2,725 in after-hours trading. Alphabet shares have fared better in recent days, compared with the shares of firms like Snap (SNAP) and
(FB), which are more focused on mobile advertising. Such firms reported hits to sales following
‘s (AAPL) changes requiring consumers to opt into advertisement tracking.
In the company’s earnings release, CEO Sundar Pichai touted efforts to become an artificial-intelligence-focused firm.
“This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners,” Pichai said. “Ongoing improvements to Search, and the new Pixel 6, are great examples. And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organizations collaborate and stay secure.”
Revenue in the Google Services business totaled $59.88 billion, while Google Cloud revenue surged 45% to $4.99 billion.
The company’s earnings call was scheduled to start at 4:30 p.m. ET.
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