Alphabet’s stock down as profits dips in Q3
San Francisco: The stock of Google’s parent company Alphabet went down 2 per cent after it reported $40.5 billion in revenue for the third quarter that ended September 30-20 per cent higher than the same quarter last year.
The company, however, reported net income of $7 billion-down from $9.1 billion in the same quarter last year.
According to MarketWatch, most of the earnings shortfall was tied to an equity investments loss of $1.5 billion during the quarter.
Google properties led the way in revenue with $28.65 billion, up 19 per cent in the year-ago quarter.
“I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud,” Google CEO Sundar Pichai, Chief Executive Officer of Google, said in a statement on Monday.
Google ad revenue improved 17 per cent to $33.9 billion.
“We continue to invest thoughtfully in talent and infrastructure to support our growth, particularly in newer areas like Cloud and machine learning,” said Ruth Porat, Chief Financial Officer of Alphabet and Google.
Alphabet, which reportedly made an offer to acquire smartwatch company Fitbit (Porat, however, declined to comment over this in the earnings call) reported traffic-acquisition costs of nearly $7.5 billion.
Google’s “other revenue,” which includes Pixel phones and Cloud products, increased 39 per cent to $6.43 billion.