Banking

Google Stock Falls As Advertising Revenue Rebounds But YouTube, Cloud Miss Views

Google stock fell on Tuesday as parent Alphabet (GOOGL) reported September-quarter earnings and revenue that topped analyst estimates. While internet search advertising revenue came in above expectations, YouTube and cloud computing sales were light in the Google earnings report.




X



Alphabet reported third-quarter earnings after the market close. Google earnings under generally accepted accounting principles, also known as GAAP, jumped 71% to $27.99 per share, including gains on equity investments.

Gross revenue rose 41% to $65.12 billion in the quarter ended Sept. 30.

Analysts had estimated Google earnings of $23.73 per share on gross revenue of $63.5 billion.

Google Stock: YouTube, Cloud Revenue Miss Estimates

The company said net revenue, minus traffic acquisition costs, came in at $53.63 billion vs. estimates of $52.07 billion. Traffic acquisition costs jumped 40% to $11.49 billion.

Google stock gained 1.4% to close at 2,786.17 on the stock market today. After the close, shares dropped 1.7% to 2,740.

Internet search and other revenue rose 44% to $37.93 billion vs. estimates of $36.41 billion. Google said cloud-computing revenue rose 45% to $4.99 billion vs. estimates of $5.17 billion. Despite the revenue miss, Google cloud cut its operating loss almost in half to $644 million.

YouTube advertising revenue rose 43% to $7.2 billion. Analysts had estimated YouTube ad revenue of $7.42 billion.

Institutional Ownership Weakens

Parent Alphabet repurchased $12.6 billion of GOOGL stock in the quarter.

Heading into the Google earnings report, Google stock traded below an entry point of 2,925.17. Institutional ownership has weakened and GOOGL stock has dropped below its 50-day-moving average.

Google stock has gained 57% in 2021. GOOGL stock still belongs to the IBD Leaderboard.

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.

IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

How This IBD Tool Simplifies The Search For Top Stocks

Find Compelling Growth Stocks With IBD’s Stock Of The Day

Get A Free Trial Of IBD Leaderboard

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists


Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button