Alphabet drops after earnings miss

  • Shares of Alphabet were down 3.66% at $US1,138.02 per share ahead of Friday’s opening bell after the company reported quarterly earnings that missed estimates.
  • Google reported earnings of $US9.70 per share, compared to the $US10.04 that was anticipated.
  • Revenue was also light, coming in at $US25.9 billion versus the $US26.23 billion that was expected.
  • Wall Street was concerned over high traffic acquisition costs, which is the fee paid to third parties like Firefox and Apple to keep web searches directed to Google. The firm doled out $US6.45 billion, up from $US4.85 billion a year ago.
  • Alphabet announced it was buying back $US8.6 billion of stock.
  • The company appointed John Hennessy chairman of the board.
  • Watch Google’s stock price move in real time here.

Read more about how millennials were trading Google ahead of its earnings.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.