Alphabet (Google) misses expectations for the quarter and falls in the stock market

AlphabetAlphabet, Google’s parent company, released its business results for the third quarter of 2022, reporting an increase in revenue for the third quarter of 2022. net income of $13.91 billion.a figure well below the $18.936 billion achieved during the same period in 2021.

This results in a earnings per share of 1.061.40 per share in the third quarter of 2021 and below the consensus expectation of 1.25 per share.

After the earnings report was released, Alphabet shares fell more than 7% on Wall Street.

About the revenuethe entity declared $69.092 millionThat figure is up from $65.118 billion a year earlier, but lower than the $70.580 billion forecast by analysts.

The website advertising revenue the company’s advertising revenue was $54.482 billion, up slightly from $53.130 billion in the third quarter of 2021.

With regard to one of its main activities, YoutubeAdvertising revenue fell to $7.071 billion, from $7.205 billion for the same period in 2021 and $7.42 billion forecast.

As it concerns Google CloudGoogle Cloud revenue rose to $6.868 billion from $4.99 billion in the third quarter a year earlier and also beating consensus forecast of $6.69 billion.

The website traffic acquisition costs (TAC).a metric used by Alphabet to determine how much it paid other websites to acquire traffic, hit $11.826 billion in the third quarter of 2022, up from $11.498 billion a year earlier. This figure is below market expectations of $12.38 billion.

Alphabet’s other bets recorded revenue of $209 million, compared to $182 million the previous year. This segment includes life science companies and self-driving car unit Waymo.

Sundar PichaiCEO of Alphabet and Google, said, “We are focused on a clear set of business and product priorities. The product announcements we made last month demonstrated this very clearly, including significant improvements in both search and cloud, with AI technology, and new ways to monetize shorts. from YouTube. We are committed to both investing responsibly over the long term and being responsive to the economic environment.“.

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