- GOOGL shares slipped following its after-hours earnings report.
- Ad spending from businesses remains a sore spot for Alphabet.
- YouTube continues to show a lack of growth for the company.
GOOGL Stock News: Alphabet Inc (NASDAQ: GOOGL) shares fell by about 5% as of the time of this writing in extended trading. The company reported earnings after the bell and missed on both earnings and quarterly revenue. Here are the numbers:
- Earnings per share of $1.05 vs Wall Street consensus expectations of $1.18 per share.
- Revenue of $76.05 billion vs Wall Street consensus expectations of $76.53 billion.
- YouTube revenue of $7.96 billion vs Wall Street consensus expectations of $8.25 billion.
- Google Cloud revenue of $7.32 billion vs Wall Street consensus expectations of $7.43 billion.
It was a narrow revenue miss for Alphabet but it extended a recent trend of slow growth for the tech giant. The report was a sharp contrast to the one from Meta Platforms (NASDAQ: META) on Wednesday.
GOOGL Stock Analysis
While most segments showed a strong year-over-year growth rate, the declining growth continues to be the headline for Alphabet. Until ad spending returns to normal, Alphabet likely will not see a period of sustained growth. One concern is the continued struggles of YouTube which is one of the company’s largest revenue sources.
Other things weighing on the company include antitrust litigation from the DOJ and the investment from rival Microsoft (NASDAQ: MSFT) in the ChatGPT AI Bot.
Alphabet is just one of three big tech companies reporting on Thursday. As of the time of this writing, Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) had yet to release their reports.