The title Alphabet drops after Google has broken profits, but sales are down

Shares of Alphabet Inc. fell about 4% during the extended session on Thursday, after the company announced earnings above expectations that far exceeded Wall Street expectations, but missed revenue forecasts.

Earnings reached $ 9.19 billion in the third quarter, or $ 13.06 per share, well above analysts' average expectations of $ 10.42 per share, according to FactSet. As in the last quarters, much of the alphabet

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earnings were related to its investments: the company reported adding $ 1.38 billion to net earnings as a result of equity gains. A change in accounting standards at the beginning of the year triggered this type of information to be provided.

Overall, Alphabet reported revenue of $ 33.74 billion, up from $ 27.77 billion last year.

"Our business continues to grow at a global level, with mobile research and our many products helping billions of people every day," said Ruth Porat, Chief Financial Officer of Alphabet. in a statement.

Google produces the vast majority of Alphabet sales, the bulk of that money coming from Google's advertising products. In total, Alphabet, Google division, achieved a turnover of 27.01 billion USD, compared to 21.97 billion USD for the corresponding period of the previous fiscal year, excluding costs related to the Acquisition of traffic, ie the amount of revenue assigned to other companies that send their eyes to Google's sites. and its network. Analysts expected a turnover of $ 27.3 billion, ex-TAC, according to FactSet.

Google properties reported $ 24.05 billion, while the company's non-Google network of ads ran $ 4.9 billion. In addition to disclosing the amount of funds from Google's sites – such as Google Search and Gmail – and its network, the company does not disclose more information. For example, analysts say YouTube is a multi-billion dollar company, but the company does not report its actual size.

Google's ad units account for most of the revenue, but Google operates several non-advertising businesses in the Google Other segment, including the cloud computing platform, hardware sales such as phones Pixel and Google Home speakers, as well as revenue. from his Play Store. Together, these companies recorded a business turnover of $ 4.64 billion, up from $ 3.59 billion a year ago. Analysts expect on average that these companies will generate a turnover of $ 4.81 billion, according to FactSet.

Alphabet's "other bets", which are non-Google experimental companies but part of its structure, posted losses of $ 727 million, compared with $ 650 million the previous quarter. Sales of other bets reached $ 146 million against $ 117 million.

The alphabet has gained 4.8% over the past year, while the S & P 500

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the index decreased by 0.7%.