Alphabet surpasses forecast
26 July, 2017, 12:00 am
Alphabet Inc surpassed Wall Street expectations for quarterly revenue and earnings on Monday, but it said costs were rising faster than sales and warned that as more traffic and searches shift to mobile devices the expenses would remain high.
The squeeze on expected future profit appeared to weigh on Alphabet’s share price, which fell about 3 per cent to $967 after the bell. Shares had closed up in regular trading.
Revenue for Alphabet, the owner of Google and YouTube, rose 21 per cent to $26.01 billion in the second quarter ended on June 30, beating analysts’ average estimate of $25.65 billion, according to Thomson Reuters I/B/E/S.
The growth in revenue, however, was slower than the 28 per cent rise in the cost of revenue, a measure of how much money Alphabet must spend to keep its platforms running before added costs such as research.