Daily Management Review

Alphabet shares fall by 7% after Q1 reporting


Alphabet revenue rose by 17% in the first quarter of 2019, which is generally a very solid figure, considering that it was $ 36.3 billion. But analysts and investors expected more from the American corporation, and the lack of clear explanations for the causes of problems makes investors doubt bright future of the company.

Robert Scoble
Robert Scoble
Alphabet Inc presented its financial report for the first quarter of 2019. It follows from the statement that the corporation's revenues for the three reporting months reached $ 36.3 billion, which is 17% more than last year. But after the close of the trading session on the NASDAQ, the company's shares on over-the-counter trades sank more than 7%.

Investors were somewhat disappointed with the revenue indicator - analysts expected it to be about $ 1 billion more. Moreover, the 17% increase is the worst indicator of the income growth over the past three years.

In addition, the company receives 84% of its revenues from the advertising business, and they have grown by only 15% over the past quarter. Typically, this figure fluctuates around 20%, and its decline could mean that Google has started to experience problems in this market, not coping with its richness and increasing competition.

The corporation's net profit fell from $ 9.4 billion to $ 6.6 billion, which indicates some problems, even excluding the $ 1.7 billion of the European Commission’s fine for violating antitrust laws.

Alphabet explains the deterioration of quarterly results by several factors, including a strong dollar and very good performance in the first quarter of 2018.

At the same time, analysts complain that it is impossible to understand how serious Alphabet problems are, from reporting, hence investors have a lot of speculation forcing them to sell off their assets. “It’s not possible to know for sure, there are a lot of components here,” SunTrust Robinson Humphrey analyst Youssef Squali told Financial Times. “They (Alphabet) are extremely, extremely scant of speech to explain exactly what challenges the company faces and how great their influence is. All this can serve as a signal for a strain."

source: ft.com

Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”