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Owner Google Alphabet misses sales forecasts



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Reuters

Google parent company, alphabet, saw its shares fall in after-hours trading after the Internet giant missed earnings forecasts.

Alphabet, which also has the YouTube, reported $ 36.3bn (£ 28bn) in sales for the first quarter, below expectations of $ 37.33bn.

Profits also fell in the three months to 31 March.

This will affect the fine from the European Commission for blocking an opponent online search advertisers.

Google had to pay € 1,5 billion (£ 1.3 billion), after he was accused of abusing its dominant position by limiting competition from other display search advertising between 2006 and 2016.

Including the fine, operating profit Alphabet fell to $ 6.6 billion from the previous $ 7.6 billion.

Sales growth slowed to 17% in the first three months of the year, lower than the expansion rate of the previous three months, compared with an increase in the same period last year 26%.

alphabet stock price fell nearly 7% after-hours trading.

concerns about the & # 39; shew

Alphabet also noted that the rate of "click" pay growth is inhibited, slowing growth by 39% compared to 59% at the beginning of 2018.

Within the model, companies pay a fee each time one of them on the & # 39; ads clicked.

Alphabet Financial Officer Ruth Porat said that the company is experimenting with its advertising products, as users grow to depend on mobile devices, and what he sees earnings volatility as a result.

The bulk of the company's revenues (84.5%) came from Google's advertising business, which sells links, banners and advertising through their own web sites and applications, and those partners.

Google's three billion people are helping to make it the world's largest seller of online advertising, according to research firm eMarketer.

George Salmon, equity analyst at Hargreaves Lansdown, said: "Another fine the EU will not be good to clean with investors, but in reality it is not a test on his way to Brussels, which causes the share to fall.

"Instead, the opposite combination of traffic growth of Google & # 39; waking slowdown and decline in revenue per click from those of the & # 39; ads that upset the market."

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