{"id":212018,"date":"2019-04-30T00:03:22","date_gmt":"2019-04-30T04:03:22","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=212018"},"modified":"2019-04-30T00:03:22","modified_gmt":"2019-04-30T04:03:22","slug":"google-stock-drops-amid-slowing-ad-revenue-growth","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/04\/30\/google-stock-drops-amid-slowing-ad-revenue-growth\/","title":{"rendered":"Google stock drops amid slowing ad revenue growth"},"content":{"rendered":"
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Google’s advertising revenue, its key moneymaker, grew by 15 per cent to $30.7 billion — slower than investors had hoped. Google’s digital-ad rivals include Facebook and Amazon, the latter of which has been steadily gaining ground. (Photo: Sundry Photography \/ Shutterstock.com)<\/figcaption><\/figure>\n

SAN FRANCISCO — Google parent Alphabet beat analyst earnings expectations but reported slowing revenue growth amid tougher competition in the online advertising market. Alphabet shares dropped more than 7% in after-hours trading.<\/p>\n

Google’s advertising revenue, its key moneymaker, grew by 15 per cent to $30.7 billion — slower than investors had hoped. Google’s digital-ad rivals include Facebook and Amazon, the latter of which has been steadily gaining ground.<\/p>\n

The results sparked concerns that Google’s enormously profitable advertising machine might be starting to sputter. Some analysts suggested it’s a signal that Google might need to diversify its\u00a0business\u00a0more quickly.<\/p>\n

\u201cDoes this put more pressure on Google to make more aggressive bets on cloud?\u201d asked Wedbush Securities analyst Dan Ives.<\/p>\n

Google executives highlighted the company’s cloud-computing\u00a0business\u00a0as one of its fastest growing segments during a call with analysts Monday. But the cloud currently accounts for only a small slice of overall revenue. Google reported $5.4 billion in \u201cother\u201d revenue, which includes cloud, hardware and Play store purchases.<\/p>\n

Alphabet reported a first-quarter profit of $8.3 billion, down 6% from $8.9 billion in the year-earlier period. Profit amounted to $11.90 per share, well above Wall Street estimates of $10.60.<\/p>\n

That figure doesn’t include an expected charge of $1.7 billion to account for a European Union antitrust fine. The fine was imposed in March for anti-competitive practices in Google’s advertising\u00a0business, referring to a specific exclusivity practice Google now says it has ended.<\/p>\n

Including the fine, Alphabet’s profit of $6.7 billion fell short of analyst estimates.<\/p>\n

Excluding advertising commissions that Google pays to customers, Alphabet’s overall revenue was $29.5 billion — also falling short of the $30 billion analysts were expecting.<\/p>\n

Alphabet also reported widening losses in its \u201cOther Bets\u201d category — a broad segment that includes experimental ventures such as self-driving car\u00a0business\u00a0Waymo and internet-balloon subsidiary Loon. Losses grew to $868 million from $571 million a year ago.<\/p>\n

Alphabet once again expanded its workforce, growing to 103,459 employees — adding nearly 4,700 workers in the last three months.<\/p>\n","protected":false},"excerpt":{"rendered":"

SAN FRANCISCO — Google parent Alphabet beat analyst earnings expectations but reported slowing revenue growth amid tougher competition in the …<\/p>\n","protected":false},"author":33,"featured_media":212019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,43],"tags":[],"class_list":["post-212018","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-stock-markets","mauthors-rachel-lerman","mauthors-the-associated-press"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/212018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=212018"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/212018\/revisions"}],"predecessor-version":[{"id":212020,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/212018\/revisions\/212020"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/212019"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=212018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=212018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=212018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}