Google parent company Alphabet misses 1st-quarter revenue estimates

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This is Google's second disappointing quarter in a row and at the time of writing Google's share price is down 7.27% in after hour trading. Analysts were looking at revenues of $172.2 million. But the executives offered limited new details, prompting Barclays' analyst Ross Sandler near the end to preface a question by saying he was just beating a dead horse.

Its parent company Alphabet reported revenues of $36.3 billion for Q1, missing analyst estimates by over a $1 billion.

"Overall, we expect GOOGL shares to be under pressure in the near-term given sub-20% revenue growth & downward earnings revisions", said JP Morgan in a note to clients.

Revenue jumped 16.7 percent to $36.34 billion.

Pichai says that there has been "genuine excitement" from the major publishers the company has spoken with and that showing the technology in action has helped to alleviate concerns over the technical challenges surrounding Stadia.

Facebook, the No. 2 internet ad company, posted 26 per cent growth to $15.1 billion in quarterly results last week.

These falls indicate that Google's pricing power for ads is deteriorating.

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Google's capital expenditure: $US4.6 billion, compared with $US7.3 billion during the same period a year ago. The company's total advertising revenue was $30.72 billion.

Alphabet has yet to tout significant revenue from its spending on ventures such as self-driving cars and its AI helper Google Assistant. Google's other revenue, which includes the cloud business, rose 25 percent to $5.45 billion.

"Google Cloud Platform remains one of the fastest growing businesses in Alphabet with strong customer momentum reflected in particular in demand for our compute and data analytics products". But it is the least growth among the so-called FAANG group, with Facebook at 48 per cent, Netflix at 39 per cent, Apple at 30 per cent and Amazon at 29 per cent.

European regulators, in announcing the fine in March, said Google "abused its market dominance by imposing a number of restrictive clauses in contracts with third-party websites which prevented Google's rivals from placing their search adverts on these websites".

Analysts on average had expected revenue of US$37.33 billion, according to IBES data from Refinitiv.

Though profits excluding the one-time costs were better than expected, revenue growth was below forecasts for the technology colossus which is the dominant internet search company and operator of the ubiquitous Android mobile operating system. Losses grew to $868 million from $571 million a year ago.