Business

Google's parent company Alphabet miss market expectations

After the Q3 results report, the company's shares fell by 2%, to $1,266.75 in after-hours trading

Alphabet, Google‘s parent company, reported quarterly earnings this Monday, 28, and the overall results missed market expectations, even though the company has registered sales growth in the advertising and cloud businesses.

For earnings per share, the company announced the value of $10.12, against a market forecast of $12.35. Net revenue, on the other hand, increased to $33.01 billion, surpassing analyst expectations that were looking for $32.7 billion.

The category comprised by Google’s cloud business, app sales in the Google Play Store, and hardware sales – which is called “Other Revenues” increased by 39% in comparison to the same period last year, but this share of the business account for about 16% of the big tech’s total revenue. 

READ ALSO: Microsoft plans to invest $5 billion to improve Azure’s IoT features

According to Business Insider, although Alphabet didn’t specify which of its investments didn’t perform as expected, the company invested in Uber and Slack before their respective IPOs – and both companies have been experiencing a drop in their stock prices since their market debuts. In addition to the slower performance of its investments, the company’s operating costs have also affected the results, since these losses increased faster than sales.