Alphabet shares drop 9.5% despite strong earnings: Cloud Revenue concerns

  • 📰 gizmochina
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 53%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Alphabet experienced a sharp decline in its stock value, plummeting by 9.5% after its third-quarter earnings report

Alphabet, the parent company of Google, experienced a sharp decline in its stock value, plummeting by 9.5% after its third-quarter earnings report, despite beating overall expectations. The drastic dip was primarily triggered by the disappointment surrounding Alphabet’s cloud revenue, which fell short of projections. In contrast, Microsoft, Alphabet’s key competitor in the cloud-computing market, saw a 2.8% gain due to the success of its AI-driven services.

Analysts reassure investors over Google’s 9.5% stock drop, deeming the reaction excessive given the cloud revenue’s 11% share in Alphabet’s total revenue. Despite falling slightly below expectations at $8.41 billion, Google’s cloud revenue grew by 22% from the previous year. Experts anticipate challenges in AI infrastructure to fade by next year, while integration with advertisements may benefit Google in the long run.

While Alphabet’s cloud business faces headwinds, its core search business remains robust, offering a glimmer of hope amidst the challenges. Analysts caution that the cloud optimization efforts might take several more quarters to yield significant results. Nevertheless, Alphabet’s strong research and technical capabilities position it as a formidable contender, even in the face of stiff competition from Microsoft.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 18. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Alphabet’s cloud business disappoints, Microsoft’s beats forecastsSAN FRANCISCO: Google parent Alphabet’s cloud business crawled to its slowest in 11 quarters, sending the company’s stock down 5.7% after hours, even ...
Source: theSundaily - 🏆 25. / 51 Read more »

Alphabet and Microsoft see earnings rise on AI-infused cloudAlphabet reported a quarterly profit of US$19.7 billion powered by ads, YouTube and cloud services.
Source: fmtoday - 🏆 5. / 72 Read more »