Google’s parent company Alphabet beat expectations for its second-quarter earnings on the top and bottom lines, but investors who have bid up the stock nearly 30% this year wanted more and the shares in the company slid after the announcement.
“I think people were hoping for a bigger beat on the top line, and we didn’t get that,” Ben Schachter, an analyst at Macquarie told Business Insider.
Alphabet’s stock fell about 3% in after-hours trading Monday.
Here are the results compared to Wall Street’s expectations:
Revenue: $US26.01 billion vs. $US25.64 billion expected
EPS (GAAP): $US5.01 vs. $US4.46 expected
Revenues for Other Bets, which include the other companies under Alphabet like Waymo, Nest, and Verily, were $US248 million for the quarter. Other Bets lost $US772 million.
The cost-per-click was down 26% from the year-ago quarter. Paid clicks were up 61% over last year.
Google’s “other revenues,” which includes segments like its hardware and cloud businesses, were $US3.09 billion, up from $US2.17 billion in the year-ago quarter. Net revenue growth has slowed down, which is related to increasing traffic acquisition costs.
Alphabet’s stock has been in good shape this year, and is flirting closer and closer to $US1,000. Despite a record-breaking $US2.7 billion fine from the EU last month, analysts remain bullish on the future of Alphabet. Alphabet’s Q2 results included the fine.
In addition to earnings, Alphabet had some other big news earlier Monday. Google CEO Sundar Pichai was named to the company’s board as its 13th member. Pichai has been a Google employee since 2004.
Get the latest Google stock price here.