Result of the alphabet T1 2019

Alphabet shares fell nearly 6% after Google's parent company released a lower-than-analyst business estimate for the first quarter of 2019.

Here's what Alphabet has to say about Wall Street's expectations:

• Earnings per share: $ 11.90 per share, excluding items, versus expected $ 10.61 per analyst survey of Refinitiv
• Returned: $ 36.34 billion vs $ 37.33 billion forecast by Refinitiv survey
• Cost of acquisition of the traffic: $ 6.86 billion, up from $ 7.26 billion, according to FactSet
• Paid clicks on Google properties: + 39%
• Cost per click on Google properties -19%

Google sees a deceleration in growth after steady growth of 20% or more in previous periods. Revenues increased by 17%, up from 28% a year ago, and advertising sales increased by 24% from the previous year by 15%.

The number of paid clicks on Google sites has increased only 39% over the same quarter of the previous year. This is a sharp decline from the fourth quarter or 2018 (up 66%) and the third quarter (up 62%). This means that Google's properties do not increase traffic volumes as quickly to offset lower advertising prices.

Investors had high hopes in the report with a 24% rise in inventory for the year to Monday's close, joining a broader rally of the technology industry.

Traffic acquisition costs were $ 6.86 billion, while analysts expected $ 7.26 billion. This indicator represents payments that Google pays to companies like Apple as their browser's default search engine.

Alphabet was fined $ 1.7 billion from the European Commission last month, as a settlement to stifle competition in the online advertising sector. Excluding the fine, the company's operating income increased 26% to $ 8.31 billion.

Google has focused the bulk of its future growth on emerging sectors of its business, while the cost per click (CPC) is decreasing. The company's hardware and cloud operations are generally included in Google's "Other Revenue" segment, which increased 25 percent to $ 5.45 billion.

The growth of the workforce in the cloud has been the main factor in increasing the company's operating expenses, said the CFO, Ruth Porat. Much of Google's costs over the last few quarters has been spent on building cloud business, which is trying to keep pace with market leaders, Amazon Web Services and Microsoft Azure. Thomas Kurian, a long-time Oracle executive, was named CEO of Google's cloud group in November. At a conference held in February, he said Google's cloud commerce "will accelerate even more growth than we have to date."

Alphabet's "other bets", which include its stand-alone company, Waymo, and its health business, Verely, remain very modest, with sales of $ 170 million, up from $ 150 million a year ago.

Following the release of last quarter's results, Alphabet's shares fell due to higher than expected capital expenditures and lower operating margin.

In addition, Alphabet is expected to earn billions of dollars from its investments in two of this year's largest technology IPOs: Uber and Lyft. It holds about 5% of each company.

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