Google parent Alphabet hit by rising costs
Google parent Alphabet reported quarterly earnings beating Wall Street expectations on Monday, but shares slipped, with investors apparently focused on rising costs at the technology giant. Alphabet reported a profit of $8.9 billion in the fourth quarter on revenue that was up 22 percent to $39.3 billion from the same period a year earlier.
“With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products and experiences to our users, advertisers and partners around the globe,” said Alphabet chief financial officer Ruth Porat.
Alphabet shares were down 3.3 percent to $1,103.50 in after-market trades that followed release of the earnings figures from the final three months of last year. Expenses rose to $31 billion compared with $24.6 billion in the same period a year ago. Another factor making the market wary was a 29 percent drop in “cost per click” or the average price of digital ads, the main source of revenue for the tech giant.
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