Technology giant Alphabet Inc GOOG GOOGL reported third-quarter financial results after the market close Tuesday, sending the stock sharply lower in after-hours trading. Here's what investors need to know.
What Happened: Alphabet reported third-quarter revenue of $69.09 billion, up 6% year-over-year. The total came in below Street estimates of $70.9 billion, according to data from Benzinga Pro.
The company reported earnings per share of $1.06, which missed an estimate of $1.27 from analysts.
Alphabet reported revenue of $39.54 billion for its Search division, $7.07 billion for its YouTube ads division and $7.87 billion for its Google Network division within the Google Ad segment.
YouTube and Network revenue were down on a year-over-year basis, bringing overall Google Ad revenue to $54.48 billion, up from last year’s $53.13 billion.
Google Other revenue was up from $6.75 billion last year to $6.9 billion for the third quarter. Google Cloud revenue was $6.87 billion, up from last year’s $4.99 billion in the third quarter.
“Financial results for the third quarter reflect health fundamental growth in Search and momentum in Cloud, while affected by foreign exchange,” Alphabet CFO Ruth Porat said.
Related Link: How To Trade Alphabet Stock Before And After Q3 Earnings
What’s Next: Alphabet CEO Sundar Pichai said Alphabet is focused on investing for the long term and "being responsive to the economic environment."
“We’re sharpening our focus on a clear set of product and business priorities,” Pichai said.
“Product announcements we’ve made in the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts.
Porat said the company is working to “realign resources” on its highest growth priorities moving forward.
GOOG Price Action: Alphabet shares are down 6% to $98.74 in after-hours trading Tuesday versus a 52-week trading range of $95.31 to $152.10.
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