Alphabet shares fall despite Google Cloud doubling
Alphabet shares fell sharply in after-hours trading Wednesday after Google's parent reported third-quarter earnings of $2.12 a share, well below analysts' estimates of about $3, partly because of an $8.7 billion loss on equity investments. Revenue rose 25% to about $127.6 billion. Google Cloud revenue more than doubled to $30.7 billion, while capital spending more than doubled to $51.4 billion from $24 billion a year earlier.
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Why it matters
Alphabet shares fell sharply after the report, which matters for anyone whose investments include the company. Alphabet spent $51.4 billion on capital projects in one quarter, more than double a year earlier, while Google Cloud revenue more than doubled.
Sources
- AP via NY1: Google misses expectations, Alphabet stock sinks after hours
- Investing.com: Alphabet shares tumble as earnings miss overshadows cloud boom
- Fortune: Google Cloud revenue doubles to $31 billion
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