Alphabet edged below consensus estimates on revenue in its third quarter results tonight, despite profits rising higher than analysts anticipated.
The Google parent firm’s share price fell more than four per cent in after-hours trading, as revenues hit $33.74bn (£26.3bn) in the third quarter compared with estimates of $34.02bn as collated by S&P Global Market Intelligence.
Net profit rose to $9.19bn, compared with $6.73bn for the same period in 2017 and beating estimates of $7.28bn.
Revenue for its advertising business rose over 20 per cent year-on-year to $29bn, edging past average estimates of $28.7bn according to Refinitiv, while its so-called other bets segment fell below estimates to record $4.79bn.
Emarketer analyst Monica Peart said Alphabet’s revenue slowdown could be likely attributed to competition from Amazon.
Meanwhile, Google chief Sundar Pichai last night released a letter admitting to firing 48 employees, including 13 senior executives, for sexual harassment in the last two years.
It came after the New York Times published an expose on former Android chief Andy Rubin, which alleged he had left the firm in 2014 with a $90m exit package after an internal investigation revealed multiple instances of sexual harassment and misconduct.