What Held Alphabet Back in Q1
Alphabet released mixed first-quarter financial results after the markets closed on Monday and shares pulled back early Tuesday.
When Alphabet Inc. (NASDAQ: GOOGL | GOOGL Price Prediction) released its first-quarter financial results after the markets closed on Monday, the tech giant said that it had $11.90 in earnings per share (EPS) and $36.34 billion in revenue. That compared with consensus estimates of $10.56 in EPS and $37.34 billion in revenue, as well as the $13.33 per share and $31.15 billion reported in the same period of last year.
The Google segment posted first-quarter revenues of $36.17 billion, up from $31.00 billion a year ago. Operating income rose from $8.37 billion to $9.33 billion. The operating loss on Other Bets totaled $868 million, up from $571 million in the year-ago quarter.
In the first quarter, year-over-year traffic acquisition costs paid to Google Network members fell by about four percentage points to 69% of Network revenues, or $3.48 billion. Payments to distribution partners totaled $3.38 billion, about 13% of websites revenues. Total traffic acquisition costs rose from $6.29 billion to $6.86 billion.
Paid clicks on Google websites increased 39% year over year and were down 9% sequentially. Aggregate cost per click fell 19% compared with the year-ago quarter and was up 5% sequentially.
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Alphabet did not offer any guidance in the report. However, the consensus estimates call for $11.46 in EPS and $39.03 billion in revenue for the second quarter.
Shares of Alphabet closed Monday at $1,296.20, in a 52-week range of $977.66 to $1,296.97. The consensus price target is $1,357.42. Following the announcement, the stock was down about 8% at $1,196.00 in early trading indications Tuesday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
