Alphabet Shares Plunge as Q2 Earnings Miss Wall Street Expectations
· Technology · CNBC, Economic Times
Alphabet shares tumbled nearly 10% in after-hours trading after the Google parent reported a disappointing quarterly financial performance. Second-quarter revenue grew 25% year-over-year to $127.6 billion but missed the consensus estimate of $128.2 billion. Adjusted earnings per share fell 7% to $2.67, coming in below the anticipated $3.02. Despite the misses, Google Cloud revenue doubled year-over-year to $30.71 billion with segment operating income surging to $11.12 billion. Alphabet also reported that its Gemini app surpassed 1 billion monthly active users while management signaled plans for a significant increase in artificial intelligence spending next year.
Why it matters
Alphabet's earnings miss and projected surge in AI spending reignite investor debate over whether artificial intelligence investments are cannibalizing the company's core search revenue.
Read the original report — CNBC
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