Alphabet Inc. shares: Alphabet’s shares came under sharp selling pressure after the company reported third-quarter results that fell short of Wall Street’s expectations, with its advertising business raising concerns among investors. GOOG shares plunged more than 10% in after-hours trading on Wednesday, 28 October.
Alphabet shares had been under pressure since the company’s July earnings announcement and came under further selling pressure in after-hours trading following its latest results.
Alphabet posted a 25% year-on-year (YoY) rise in revenue to USD 127.6 billion in the September quarter, driven by robust performance in Google Cloud and Search. The technology giant also announced that its annual revenue run rate had reached $500 billion.
According to its earnings release, the company extended its streak of double-digit revenue growth to 13 consecutive quarters. Operating income increased 30% YoY to $40.6 billion, while the operating margin came in at 31.8%.
However, net income attributable to common stockholders fell to $26.2 billion from $35 billion in the corresponding quarter last year. Diluted earnings per share (EPS) also declined to $2.12 from $2.87. Alphabet attributed the decline to an $8.7 billion loss on equity securities, which reduced net income by $6.7 billion.