After slipping by as much as 3% during the after-hours trading on Monday’s session, Alphabet (NASDAQ:GOOGL) shares are down once again during the pre-market trading by around 3.04% as more investors and analysts expressed their disappointment over the company’s recent earnings report.
The company was still able to beat most analyst expectations, especially with its earnings and revenue. From consensus analyst estimates of $4.46 earnings per share, Alphabet Inc posted earnings of $5.01 per share.
Alphabet Inc also delivered a revenue of $26.01 billion beating its revenue from the same quarter last year of $21.5 billion and analysts forecasts of $25.64 billion. The revenue shows a 21% jump from their previous revenue for the same quarter last year also beating analysts who expected a 19% jump in their revenue for the second quarter.
However, shares of the company still fell on Monday’s market close after the company reported its net profits were down by 28% following a massive antitrust fine from the European Union worth $2.7 billion which was imposed on the company last month affecting most of its profits.
While most analyst estimates resulted into an expectation of $5.01 in earnings per share, most of the markets still wanted a bigger earnings beat which the company was not able to deliver due to the hefty EU antitrust fine.
Alphabet’s chief financial officer Ruth Porat also stated that the company has invested largely and will invest more in developing and coming up with new revenue sources that will give them better growth in the future. The public which has been switching to mobile applications for search functions has led the company to invest more in research and the development of its mobile searches which proves to give higher profits than usual desktop searches. For the second quarter, Alphabet traffic acquisition has increased to $5.09 billion higher than what most analysts expected at $4.74 billion.
The shares of the Google parent company have rallied to as much as $986 from the beginning of the month where Alphabet shares were trading at around $894.79. Google shares are now trading at $950.70 down from the previous trading session by 3.02%.