Google misses Wall Street expectations, Alphabet stock sinks in early after-hours trading
The Mountain View, California-based company said its net income was $26.17 billion in the July-September period. That's down from $34.98 billion in the same period a year earlier.
Alphabet Inc., the parent company of Google, fell short of Wall Street expectations in its third-quarter results, leading to a decline in its stock price in after-hours trading. The company reported a net income of $26.17 billion, which was lower than the $34.98 billion earned in the same period a year earlier. However, revenue growth stood at 25% to $127.58 billion, slightly below analysts' expectations of $127.97 billion.
Earnings per share were $2.12, compared to the estimated $3.01 per share. CEO Sundar Pichai stated that the quarter was strong and highlighted the company's growth potential through its AI initiatives, noting that Google's Gemini app has reached 1 billion users. The company's AI infrastructure and solutions were identified as key drivers of cloud growth, with Alphabet now positioning itself as a potential leader in the AI race.
Nonetheless, revenue growth in other areas, such as Google Search and advertising, did not meet expectations, prompting concerns among investors about possible deceleration in growth.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
