Is Alphabet Slowing Down After Q3 Numbers?
When Alphabet released its third-quarter financial results after the markets closed on Monday, the tech giant said that it had $10.12 in earnings per share (EPS) and $40.50 billion in revenue. That compared with consensus estimates of $12.42 in EPS…
When Alphabet Inc. (NASDAQ: GOOGL | GOOGL Price Prediction) released its third-quarter financial results after the markets closed on Monday, the tech giant said that it had $10.12 in earnings per share (EPS) and $40.50 billion in revenue. That compared with consensus estimates of $12.42 in EPS and $40.32 billion in revenue, as well as the $13.06 per share and $33.74 billion reported in the same period of last year.
The Google segment posted third-quarter revenues of $40.34 billion, up from $33.59 billion a year ago. Operating income rose from $9.49 billion to $10.87 billion. The operating loss on Other Bets totaled $941 million, up from $727 million in the year-ago quarter.
In the third quarter, year-over-year traffic acquisition costs paid to Google Network members fell by about one percentage point to 69% of Network revenues, or $3.63 billion. Payments to distribution partners totaled $3.86 billion, about 13% of websites revenues. Total traffic acquisition costs rose from $6.58 billion to $7.49 billion.
Paid clicks on Google websites increased 18% year over year and were up 1% sequentially. Aggregate cost per click fell 2% compared with the year-ago quarter and was up 3% sequentially.
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Alphabet did not offer any guidance in the report. However, the consensus estimates call for $12.99 in EPS and $46.96 billion in revenue for the fourth quarter.
Shares of Alphabet closed Monday at $1,288.98, in a 52-week range of $977.66 to $1,299.24. The consensus price target is $1,426.90. Following the announcement, the stock was initially down about 2% at $1,258.58 in the after-hours trading session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
