Google Owner Misses Revenue Shares Slump
Google’s parent company, Alphabet, has released its latest earnings report who disclosed slower third-quarter revenue growth missing Wall Street estimates, with disappointing ad sales barely reaching targets according to reports, sending shares down more than 4%.
Their third-quarter profit of $9.19 billion exceeded expectations but missed estimates.
Alphabet reported a 21% increase in sales at $33.74 billion, a slowdown of the 26% revenue growth in their second quarter, and missing analyst estimates of $34.05 billion.
Earnings per share were $13.06. Analysts on average had expected $10.40 per share. The company’s stock fell 3.3 per cent to $1,060 in after-hours trading.
Google and Alphabet have been plagued by numerous reports which have no doubt concerned investors leading to these results.
Reportedly, investors are concerned that tougher regulations from the US and EU could make it more difficult to collect personal information which the company uses for its tailored advertising network.
Google has also worked to comply with a record $5 billion fine from the European Commission after Europe’s antitrust watchdogs ruled the company’s business practices around its Android operating system hurt competition in the region.
In order to comply with the ruling, they announced that Google will not bundle Android apps for phone manufacturers in Europe anymore, offering a new paid licensing deal instead to those who want to include Google Play app store, Maps, Gmail and YouTube on their devices.
An additional license will be required to permit phone manufacturers to include Google’s search engine and Chrome browser.
Recent reports about Dragonfly, a censored search engine proposed for China, prompted moral concerns within the company.
Lawmakers and data protection authorities in the EU, US, and around the world have also questioned Google over the decision to wait until September to reveal a security vulnerability involving its struggling Google+ social media system.