Alphabet Shares Drop As Profit Slides 25 Percent And Ad Growth Slows
· Technology · The Hindu, Economic Times
Google parent Alphabet reported a 25 percent slide in net profit to $26.2 billion for the July-to-September period, missing analyst expectations. Shares fell more than 10 percent in after-hours trading following the announcement of the profit miss and an advertising slowdown. Revenue rose 25 percent to $127.6 billion, driven by a 103 percent surge in Google Cloud revenue to $30.7 billion. The company booked an $8.7 billion loss on equity investments due to its stake in Elon Musk's SpaceX. Alphabet also stated it will continue to increase capital expenditure spending significantly in 2027.
Why it matters
The profit miss and heavy spending on artificial intelligence signal broader cost pressures for major technology firms investing in infrastructure.
Read the original report — The Hindu
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