Google's parent, Alphabet, had a worse first quarter than the Rockets did against the Warriors on Sunday. With only $36.3B in revenue, the internet juggernaut came up roughly $1B short of its forecasted earnings. Gavin Belson would not let this sh*t happen at Hooli.
And Alphabet appears to be suffering from a "growing" problem. It's cool man, we've all been there. The company posted its slowest growth rate in almost four years. Revenue was up 17%, compared to 26% in last year’s Q1, while its margin fell to 18% from 25% over the same period. For reference, Facebook saw its revenue grow 26% this quarter.
Earnings per share also disappointed investors, at $9.50 per share versus an expected $10.17 per share. News of Alphabet’s poor performance led to a 7% drop in share price on Monday. When reached for comment, Alphabet had this to say: "At least we aren't Bing."
Welp, a $1.7B fine from the EU for limiting competition in April doesn’t exactly scream investor confidence. And analysts are becoming wary of Alphabet’s Google product, raising concerns that it's more or less a one trick pony.
Companies like Facebook, Amazon, and Twitter have been eating away at Alphabet’s once untouchable online advertising market share. For what it's worth Alphabet still boasts one-third of all internet ad revenue (Facebook is second with 20%) ... and two-thirds of all adult entertainment searches.
Google Shows First Cracks in Years [WSJ]
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