Alphabet earnings fall short of Wall Street forecasts
Alphabet on Monday reported third-quarter earnings of $7.07 billion.
On a per-share basis, the Mountain View, California-based company said it had net income of $10.12.
The results fell short of Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $12.57 per share.
The internet search leader posted revenue of $40.5 billion in the period. After subtracting Alphabet's advertising commissions, revenue was $33.01 billion, surpassing Street forecasts. Eleven analysts surveyed by Zacks expected $32.84 billion.
Alphabet continues to show strong ad revenue growth despite declining advertiser spending for each click, Nicole Perrin, an analyst with eMarketer, said in a note.
The company makes the majority of its money from selling advertising across the web, apps and Google products including its search engine and video streaming site YouTube. Investors are also closely watching the growth of Google's cloud computing business.
"I am extremely pleased with the progress we made across the board in the third quarter, from our recent advancements in search and quantum computing to our strong revenue growth driven by mobile search, YouTube and Cloud," Google CEO Sundar Pichai said in a statement.
Alphabet shares have climbed 23% since the beginning of the year, while the Standard & Poor's 500 index has risen 21%. In the final minutes of trading on Monday, shares hit $1,288.98, a rise of 19% in the last 12 months.