Shares for Alphabet, Google’s parent company, dropped by almost 6 percent on Thursday after the group reported revenues below analysts’ expectations for the third quarter, as well as higher expenditures that cut into its operating margin, Reuters reports.
Investors are concerned that big investments in new businesses, increasing regulatory scrutiny and emerging competition are producing slow, unpredictable results.
Alphabet’s overall revenue rose 21 percent to USD 33.5 billion, but missed estimations by about USD 310 million.
Google ad sales contributed a staggering 86 percent of the revenue, but growth slowed down to 20 percent, from 24 percent last quarter.
The company said unfavourable currency exchange rates were responsible for most of the slower revenue growth. Financial analysts say the company may also have been affected by lower ad pricing to contend with antitrust concerns, new privacy rules in Europe and increased competition from Amazon.Read more aboutAdrian Apostu (Dino Parc Râșnov): 2 million visitors represent a milestone that makes us both happy and responsible read more
Alphabet reported net profit of $9.2 billion, or $13.06 per share, compared with $6.7 billion, or $9.57 per share in the year-ago quarter. That beat the average analyst estimate of $10.45.
