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Google has announced a profit increase in the last quarter and revenues have been below expectations
Internet titans Google and Amazon have gone under a cloud of investors after posting disappointing sales updates, with the search leader also on the defensive for seemingly silencing sexual misconduct.
Two of the most profitable companies in the world suffered a fall in share prices after the publication of their quarterly results, declines that fueled pessimism on the Asian and European stock markets on Friday.
Although both on Thursday reported bumper profits in the last quarter, revenues fell short of Google's expectations and Amazon scared the markets with a so-so to predict the holiday season of any importance to come .
"In the current market environment, your results report must be perfect, otherwise your action will be punished," said Vic Anthony, an analyst at Aegis Capital Corp.
According to the New York Times, a high-ranking employee, Android creator, Andy Rubin, received a $ 90 million exit package while he was facing allegations of misconduct and that Google had concealed other allegations of sexual harassment.
Sundar Pichai Executive Chief Google sent an email to employees stating that 48 people had been terminated for sexual harassment in the past two years, including 13 who were senior and above, but that no one received a packet of exit.
He stated that Google was "very serious" about the need to provide a safe workplace and that the report on Rubin and others was "hard to read", but that it was not directly dealing with claims.
Sam Singer, spokesman for Rubin, dismissed the charges against him in a statement to AFP, saying Rubin had left Google of himself in 2014 to launch venture capital firm Playground.
The latest report added to a vocal chorus denouncing the macho culture in Silicon Valley dominated MALE, which hit a number of Internet industry executives at other tech giants their roost.
Nerves despite net growth
Google is already studying Facebook for its privacy and data protection policies, but on the commercial side, it continues to increase its revenues.
Alphabet, Google's parent company, said its third-quarter net profit rose 36 percent to $ 9.2 billion, thanks to the growth of digital advertising available online and on smartphones.
Alphabet is working to diversify, with its own pixel brand of smartphones and tablets, its Google Home smart speakers gaining ground on the market leader, Amazon and services like cloud computing, another area where Amazon is strong.
"Our hardware efforts are gaining momentum," Pichai told analysts at a conference call.
Investors are disappointed with Amazon's earnings and profit forecasts during the busy period leading up to Christmas
Alphabet revenues, however, were below expectations, rising 21% to $ 33.7 billion in the three months to September, compared with the same period in the same period last year. last year.
"Alphabet is the king of ad revenue, so any weakness makes people nervous," said independent technology analyst Rob Enderle.
The Alphabet shares lost ground after the earnings release and lost 5.04% in pre-market trading on Friday.
For its part, Amazon shares lost 8.66% before opening on Friday, while their quarterly net profit was up tenfold over the previous year to reach 2.9%. billions of dollars.
The Seattle-based company has touted the growing popularity of Amazon Business, a service designed as a source of equipment and supplies of all kinds for businesses.
"And we are not slowing down, Amazon Business is rapidly adding customers, including major educational institutions, local governments and more than half of the Fortune 100 companies," said Amazon founder and CEO Jeff Bezos, in a statement.
Rivals at the crown of Amazon
The e-commerce leader's sales in the West reached $ 56.6 billion in the third quarter, up 29% year-on-year.
That was less than expected, and investors were also disappointed by Amazon's revenue and profit forecasts during the busy period leading up to Christmas.
Amazon's net profit is affected by its significant investment in cloud-based data centers and voice-based hardware, and by its decision to increase by 15 US dollars the hourly wage. American workers leave, while low wages are criticized.
GlobalData chief executive Neil Saunders Retail said that although Amazon had an enviable number, net sales growth was the weakest in a year, and online competition was picking up brick-and-mortar rivals in the United States as Wal-Mart and Target.
"Make no mistake, Amazon remains a giant in the online market – and we do not believe it is seriously threatened," Saunders said.
"However, others are getting better at nibbling his dominance."
– Bloomberg News contributed to this report –
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