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EU penalty pushes profit Google-the mother Alphabet

A sensitive decline in profit at the Google native Alphabet has shocked the close of trading in the U.S. markets. The tech giant continues to grow, but not as quickly as usual and is somehow a bit alien.

Because it is quite unusual tones, which penetrated there in the evening from California and the Rest of the (stock) world. The Google mother's Alphabet was suffered in the first quarter of a sensitive profit decline of 29 percent to 6.7 billion dollars - what is not only the punishment of the EU of 1.7 billion dollars against the company for abuse of its position of power in the Online ad market was to blame.

Further course information, to Alphabet A

Further course of The reaction of the exchange> information about Alphabet C

More problems than

Such mundane things as high costs or increased competition in the Online-advertising market have required in the quarter to take their toll. Unusual tones for the IT giant from Mountain View, whose best horse, the search engine Google remains in the stable.

On a group level, revenues increased by 17 percent to 36,34 billion dollars, which shows that the Online advertising market continues to have high growth-generated rates. But in the case of Alphabet, it was just not as much as expected. Experts had said in the run-up to about a billion dollars more. It was also the lowest sales growth in three years.

as you know, the stock market reacts allergic to it, if the expectations are not met, in addition, IT had competitors like Facebook, Amazon and Twitter recently to higher growth rates.

As it also doesn't help when chief financial officer Ruth Porat showed satisfied with the result: "We have delivered a robust quarter, led by mobile search, Youtube and Cloud services," said the Top-Manager.

cost pressure

the increase in costs in the quarter, an increase of 16.5 percent to $ 30 billion, arrived in the market.

Already for a long time the Alphabet, struggling with rising costs. So, the group spends more money for its data centers, real estate, or the development of research projects for the artificial intelligence. Apparently, the stock market is not yet ready to anticipate the future investments (for example in Autonomous Driving with the daughter Waymo).

share price is good, but it must always be

boost better, its share price from the current record level of more needs to Alphabet be not only good, but very good. After all, over 870 billion dollars, the company brings to the exchange balance, and thus it belongs to the very Big.

A - and C-shares are at a record high, but also applies here: The others were better. As Facebook grew since the beginning of the year around 50 percent, Netflix almost 40 per cent and Apple around 30 percent. The Alphabet papers rose by "only" around 23 percent (before the after-hours fall in the share price yesterday).


source: in The year, Samsung's profit is close to breaking a Lot of thrust at MTU as a ...

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