Alphabet reports quarterly revenue miss, sending shares down more than 10%
Alphabet shares fell more than 10% in Thursday premarket trading as Nasdaq futures dropped 1.1% after quarterly revenue missed expectations. Weak search sales drove the miss despite cloud growth, The Wall Street Journal said. Bloomberg said quarterly sales and profit fell short, signaling that Alphabet was not generating enough return to justify its massive AI investments.
More context
Alphabet shares fell more than 10% in premarket trading Thursday, while Nasdaq futures dropped 1.1%, after the Google parent reported quarterly sales and profit below expectations. The Wall Street Journal said overall revenue missed forecasts despite soaring cloud-computing sales, with weaker-than-expected search revenue behind the shortfall. Analysts cited by the Journal questioned whether Alphabet can make money from its AI-powered search engine. Bloomberg said the results indicated Alphabet was not generating enough return to justify its large AI investments, sharpening investor concerns about the costs of the technology. The selloff extended beyond Alphabet: Asian technology shares fell, and Samsung Electronics dropped more than 5% after its results missed high expectations, according to Seeking Alpha. Technology stocks also fell across global markets, the Journal reported, as earnings from major U.S. and Asian companies renewed questions about AI profitability.
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Reporting
- The Wall Street Journal — Nasdaq Futures Fall as Alphabet Revenue Miss Drags Tech Stocks - WSJ
- Seeking Alpha — Asian stocks fall on AI tech selloff; HKMA mirrors Fed hold — TradingView News
- Bloomberg — Alphabet’s (GOOGL) AI Spending Outpaces Returns, Pressuring Revenue, Profit - Bloomberg
- lancasteronline.com (with Associated Press) — World shares and U.S. futures are mixed after Google parent Alphabet's earnings disappoint | Stock Market | lancasteronline.com
- hdfcsky.com — Asian Markets Mixed; Tech Weakness, Crude Risks Hit Sentiment
- theedgesingapore.com — Tech stocks drop as Alphabet, Samsung disappoint
Verifier’s note
LancasterOnline’s AP report, HDFC SKY, the Wall Street Journal, TradingView’s Seeking Alpha report, and Bloomberg coverage at Bloomberg and The Edge Singapore report that disappointing Alphabet results weighed on shares and tech-market sentiment. The Wall Street Journal specifically reports a premarket drop of more than 10%, and Bloomberg reports disappointing results and falling shares.