Google-parent Alphabet (GOOGL) on Tuesday reported September-quarter profit and revenue that missed estimates as its core digital advertising business fell short of lowered expectations. GOOGL stock tumbled on the Google earnings news as YouTube ad revenue fell.
X
The internet search giant said third-quarter profit fell 24% to $1.06 per share. The company reports earnings under generally accepted accounting principles, also known as GAAP.
Gross revenue rose 6% to $69.09 billion amid headwinds from currency exchange rates. In the year-earlier period, Google revenue rose 41%.
Analysts had predicted Google earnings of $1.26 per share on revenue of $71 billion. A year earlier, Google reported earnings of $1.40 per share on revenue of $65.1 billion.
GOOGL stock sank 6.3% to near 97.90 in extended trading on the stock market today. Heading into the Google earnings report, the big-cap tech stock had retreated 27% in 2022.
GOOGL Stock: YouTube Revenue Falls
YouTube ad revenue fell nearly 2% to $7.07 billion amid increased competition from TikTok. GOOGL stock analysts had estimated YouTube ad revenue of $7.5 billion, up 3.5%.
Meanwhile, overall Google advertising revenue rose 2.5% to $54.48 billion, missing estimates of $56.58 billion.
Google said cloud-computing revenue rose 37% to $6.87 billion, edging by estimates of $6.7 billion.
Alphabet repurchased $15.39 billion of its own stock, about the same as in the June 2022 quarter.
The company released the Google earnings report after the market close. GOOGL stock holds a Relative Strength Rating of 46 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
YOU MIGHT ALSO LIKE:
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Learn How To Time The Market With IBD’s ETF Market Strategy
How To Use The 10-Week Moving Average For Buying And Selling
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
