Alphabet stock drops after earnings show disappointing Google sales growth

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Alphabet shares down over 2% after quarterly results

Alphabet Inc. revenue came up short of expectations as all of its major sales categories performed slightly worse than projected in the first quarter, and yet another big fine out of Europe dinged the company’s earnings, according to an earnings report Monday afternoon that sent shares down more than 5% in after-hours trading.

Alphabet’s earnings would have been $11.90 a share were it not for a $1.7 billion fine out of Europe for its online-advertising practices. Analysts on average expected ex-TAC sales of $30.04 billion and earnings of $10.60 a share, according to FactSet, and were largely ignoring the fine in their estimates.

Google’s other businesses — Play Store, hardware and Google Cloud — reported revenue of $5.45 billion, missing expectations of $5.67 billion, while Other Bets claimed revenue of $170 million against expectations of $172 million. Other Bets also reported an operating loss of $868 million, a jump from $571 million a year ago and appreciably worse than the average analyst estimate of $640 million.

 

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