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Why Alphabet’s stock could see its worst drop in years after the latest results
MarketWatch • • business
Key Points:
- Alphabet's shares dropped sharply in after-hours trading following its third-quarter earnings report, which showed a miss in both revenue and earnings expectations.
- The company's revenue grew 25% year-over-year to $127.6 billion but fell short of the $128.0 billion analysts had anticipated.
- Earnings per share came in at $2.12, significantly below the Wall Street consensus of $3.02, largely due to an $8.6 billion paper loss on equity stakes.
- Alphabet attributed the substantial paper loss primarily to its investment in SpaceX.
- The results have raised concerns about the impact of artificial intelligence on Alphabet's core search-engine business.
