Alphabet drops on revenue miss

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Google parent Alphabet missed on revenue last quarter, reporting $36.34 billion vs. $37.33 estimated. It also reported $11.90 per share in Q1 2019, compared to the anticipated $10.61

Here's what Alphabet reported compared to Wall Street's expectations:$11.90 per share, ex-items, vs. $10.61 expected, per Refinitiv survey of analysts$6.86 billion, vs. $7.26 billion expected, according to FactSet

Google is seeing decelerating growth of paid clicks on its own sites. Paid clicks on Google properties grew only 39% from the year-ago quarter. That's a sharp drop from the fourth quarter or 2018 and third quarter . It means that Google properties are not growing traffic volumes as quickly to make up for declines in advertising prices.

The company's persistent growth, even in a market as mature as search, has pushed the stock price to a record after a slide late last year. The stock has gained 24% this year, joining a broader rally across the tech industry. Traffic acquisition costs were $6.86 billion, while analysts expected $7.26 billion. This metric represents the payments Google pays to companies like Apple to be the default search engine on their browser.

Google has pinned much of its future growth on the emerging areas of its business as cost per clicks decline. The company's hardware and cloud businesses are typically included in Google's "other revenues" segment, for which the company reported a 25% increase to $5.45 billion. Alphabet's so-called "Other Bets," which include its self-driving startup Waymo and health venture Verily, remain very small, with revenue of $170 million, up from $150 million a year ago.

 

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