A, B & Cs of Google’s Q3 Results
> Google's Q3 Performance
Slowdown in Ad sales, missing analyst expectations.
• Total revenue was $69.09bn vs $65.12bn yoy. Analysts on average expected revenue to be $70.58bn.
• Net income fell to $13.91bn, or $1.06 per share, from $18.94bn, or $1.40 per share yoy. Net income missed analyst expectations of $1.25 per share.
• Operating margin declined to 25% vs 32% yoy.
• Ad revenue was $54.48bn vs $53.13bn yoy, but came in below analysts' expectations.
• Ad sales on YouTube declined to $7.07bn from $7.2bn yoy.
• Revenue from Google Cloud rose to $6.9bn from $5bn yoy.
Alphabet is facing a slowdown in advertiser spending on YouTube and the cooling of adspend by financial services sectors on Google, and plans to cut hiring by more than half.
-> Shares in Alphabet fell 6.5% in trading after the bell.
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