Alphabet’s (GOOG; GOGL34) Q3 net income was US$19.69 billion; shares are falling

Alphabet, the parent company of Google, reported net income of US$19.69 billion in the third quarter, with adjusted earnings per share of US$1.55, beating the US$1.45 estimate of analysts polled by analysts. FactSet. The result also represents an increase from net income of US$13.910 billion, or US$1.06 per adjusted share, in the same period last year.

The result in the cloud computing component, however, disappointed expectations, and shares fell after the session ended in New York.

The company’s revenue amounted to 76.693 billion US dollars, an annual growth of 11%. Operating profit was US$21.343 billion, compared to US$17.135 billion previously.

Alphabet also reported that Google’s ad revenue rose to $59.647 billion from $54.482 billion previously.

Cloud computing rose to US$8.411 billion from US$6.868 billion earlier, but this component fell short of market expectations, Dow Jones Newswires.

After the balance sheet, the company’s shares fell 5.84% in after-hours trading in New York at 5:30 p.m. (Brazil time).

In an analysis by William Castro Alves, Avenue’s chief strategist and columnist Financial intelligenceAlphabet reported better-than-expected revenue and profit numbers, but disappointing results from its cloud storage segment weighed on its stock.

“The division was a key area of ​​investment for a company that seeks to compete with Amazon and Microsoft, the dominant players in the segment,” Castro Alves said.

Microsoft, which reported results today, reported better-than-expected earnings, with cloud demand stronger than expected.

With information from Dow Jones Newswires d Contents of Estadão.