Alphabet Tumbles After Earnings Miss

Google parent Alphabet missed earnings expectations and tumbled over 5% after hours…

Google is still growing in a serious way, with the number of money-making clicks up around 43% from the same time last year. But each individual click is making less money now.

 

Earnings missed, operating income disappointed, and costs per click fell notably.

  • 4Q EPS $9.70, estimate $10.04 (range $9 to $10.92) (Bloomberg data)
  • 4Q paid clicks +43%
  • 4Q Google other revenue $4.69 billion
  • 4Q revenue ex-TAC $25.9 billion, estimate $25.59 billion (range $24.91 billion to $26.36 billion) (BD)
  • 4Q cost-per-click -14%
  • 4Q operating income $7.66 billion, estimate $10.24 billion (range $9.92 billion to $10.90 billion) (BD)
  • 4Q Other Bets revenue $409 million
  • 4Q Other Bets operating loss $916 million
  • 4Q Google advertising revenue $27.23 billion
  • 4Q free cash flow $5.96 billion
  • 4Q capital expenditure $4.31 billion

Of course there was an attempt to save the day…

Alphabet to Buy Back Shares up to Added $8.59B Class C Stock

But for now it’s not helping the stock.

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