From Fastcompany · · 1m 50s
Google stock plunges on search revenue miss
Alphabet shares fall over 10% after Q3 results disappoint on search revenue and earnings, marking a historic post-earnings decline.
In brief
Alphabet shares fall over 10% after Q3 results disappoint on search revenue and earnings, marking a historic post-earnings decline. Alphabet's stock fell more than 10% after third-quarter results missed Wall Street expectations on search revenue and earnings per share, potentially marking the largest one-day…
Alphabet shares crater after earnings
Shares of Alphabet Inc., Google's parent company, fell more than 10% after the company reported disappointing third-quarter results yesterday. The decline could mark the largest one-day post-earnings loss in Google's history.
Q3 results covered September quarter
Alphabet announced its third-quarter twenty twenty-six results yesterday, covering the three-month period that ended on September thirty. The company tried to present the results as positively as possible.
Revenue growth masks disappointment
Consolidated revenue increased 25% to one hundred twenty-seven point six billion dollars. Google Cloud revenue jumped 103%. Gemini app users crossed one billion, making it the fastest-growing product in company history.
Search revenue falls short of expectations
Google's revenue of one hundred twenty-seven point fifty-eight billion dollars came in below Wall Street expectations of one hundred twenty-eight point twenty-two billion dollars. Search revenue, Google's traditional bread and butter, was below expectations.
Earnings per share disappoints investors
Google's adjusted earnings per share was two dollars and sixty-seven cents. Wall Street was expecting three dollars and two cents. The miss fueled investor concerns about disruption from AI chatbots.
Stock sinks after announcement
After Alphabet announced Q3 results after the closing bell yesterday, GOOG shares sank more than 10%. That loss extended to premarket trading this morning and may continue through today's close.
Historic decline if losses hold
If the stock price decline holds through the closing bell today, it will be the largest one-day post-earnings stock price fall in Google's history. The drop reflects investor alarm over search revenue weakness.
In short
Alphabet's stock fell more than 10% after third-quarter results missed Wall Street expectations on search revenue and earnings per share, potentially marking the largest one-day post-earnings drop in Google's history.
