(Video with details)
April 29 (Reuters) – The alphabet could not, unlike many of its competitors, enjoying the strength of the US economy: the Internet giant said Monday turnover in the first quarter below analysts' expectations.
The parent company Google has announced turnover in the 1st quarter and 17% year-on-year, its slowest growth in three years, to 36.3 billion (32.5 billion €), against the consensus of 37.3 billion according to IBES Refinitiv.
Google's competitors for advertising revenue as Facebook, SNAP, Amazon and Twitter announced last week higher quarterly earnings or equal to the forecast.
Action Alphabet retreated Monday trades nearly 4% after the close of Wall Street. The name of the regular session ended at 1.5% to a record level of over 1296.20 dollars.
The cost of the alphabet for the quarter grew by the same rate as sales (+ 16.5% year on year to 29.7 billion US dollars).
The increase in the Group's expenses for two years worried investors who follow the alphabet effort to protect its users' data and the fight against potentially offensive advertising.
Alphabet announced early in February sales and higher profit expectations in Q4 2019 but clearly higher costs, both commercial and for the creation of new data center or hire professionals "cloud", put the chip to the ears of investors.
The market, however, it is expected that the company's results for the first three months of 2019 benefited from a favorable macroeconomic environment. The action thus taken nearly 12% from the previous session and quarterly results on Monday.
Three billion Google users & # 39 are the largest seller of advertising in the search engines on the Internet, the source, which contributes to almost one-third of the total turnover against 20% for Facebook, according to eMarketer consultant. (Arjun Panchadar in Bangalore and Paresh Dave in San Francisco, Patrick Vignal for the French service)