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Alphabet Earnings: Google Parent Stock Slides Despite Profit, Sales Beats

Oct 24, 2023 - forbes.com
Alphabet, Google's parent company, exceeded expectations in its Q3 earnings report, with robust digital advertising revenue despite economic instability. The company reported $1.55 earnings per share and $76.6 billion in sales, surpassing analysts' projections. Advertising accounted for $59.6 billion of Q3 sales, with significant contributions from Google search and YouTube. However, Alphabet's crucial cloud segment fell short of expectations, leading to a 5% drop in shares.

Despite this, Alphabet has seen a more than 50% share price rally this year, largely due to strong earnings reports. The company, which recently celebrated its 25th anniversary, is currently facing a significant antitrust lawsuit from the Department of Justice. Additionally, Alphabet has reduced its global workforce by 4% in 2023 as part of cost-cutting measures.

Key takeaways:

  • Alphabet, Google's parent company, exceeded expectations in its Q3 earnings report with robust digital advertising revenue, despite economic turbulence.
  • Alphabet reported $1.55 earnings per share and $76.6 billion in sales for the quarter ending September 30, surpassing analysts' projections.
  • Despite the positive results, Alphabet's cloud segment underperformed expectations, leading to a 5% drop in shares.
  • Alphabet has reduced its global workforce by 4% in 2023, from 190,234 at the end of 2022 to 182,381 at the end of Q3.
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