Google parent company Alphabet has surprised investors, with Q1 revenues around US$1 billion less than analysts expected. The news follows growing advertising competition from the likes of Amazon and Facebook.
For the three-month period, Q1 revenue notched US$36.3 billion, with per-share earnings of US$9.50 missing market forecasts for US$10.17.
Company shares sunk over 7% in after hours trading, following the earnings report.
Google’s advertising growth is reportedly now amongst its lowest levels since 2015, however, some analysts assert the trend is unlikely to persist long-term.
For the quarter, revenues climbed 17% year-on-year – considerably lower than the 26% lift reported the year prior.
Company margin slipped to 18%, down from 25% the previous year.
Margins are said to have been impaired by significant EU fines, including last month’s US1.7 billion penalty for search engine anti-competitive tactics.
Google’s hardware division has also remained challenged, with its smart speaker division offsetting sluggish Pixel smartphone sales.
