The 22% revenue growth rate at Google Cloud came in well short of expectations.
Alphabet is coming under intense selling pressure Wednesday as Wall Street punishes the stock for disappointing third-quarter growth in the company’s cloud computing business.
Alphabet’s financial results continue to be dominated by its advertising business—both search and YouTube ads came in ahead of expectations. But the Cloud miss was stark, and ill-timed: The results arrived the same afternoon that Microsoft ‘s results for its Azure cloud computing business came in ahead of Street expectations.
Monness Crespi Hardt analyst Brian White responded to the news by lowering his rating on Alphabet stock to Neutral from Buy. Among other things, White found the tone of the company’s post-earnings conference call to be “opaque.” He noted that when Alphabet reported June quarter results, it said CFO Ruth Porat was shifting into a new role, overseeing the company’s Other Bets portfolio. But no replacement for Porat has been announced yet. On that score, White has some advice for the Alphabet board: “We believe it would be wise to bring in an executive who speaks the language of Wall Street.”Most other analysts are staying bullish on the stock, although the cloud miss was not the only issue.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Google-parent Alphabet's cloud division misses revenue estimates, as Microsoft’s cloud boomsGoogle-parent Alphabet's cloud division misses revenue estimates, as Microsoft’s cloud booms
Read more »
Alphabet stock falls 8% on cloud miss as investors praise Microsoft Azure growthGoogle's Cloud revenue miss came in stark contrast to Microsoft's earnings, which showed accelerated growth in its Intelligent Cloud business
Read more »
Stock Market Today: Dow, S&P 500 Open Lower; Alphabet Stock Price FallsLive updates on what's moving markets, including stocks the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite
Read more »
Alphabet shares fall after cloud revenue gains fall short of expectationsAlphabet shares fall after cloud revenue gains fall short of expectations
Read more »
Google-parent Alphabet's cloud division misses revenue estimatesGoogle-parent Alphabet's (GOOGL.O) cloud division missed estimates for third-quarter revenue on Tuesday as an uncertain economy and high interest rates forced companies to trim their budgets.
Read more »
Alphabet shares dive as Google cloud revenue weakensRevenue growth at Google’s cloud unit to slow to 22.5% in the third quarter, from 28% in the prior three-month period.
Read more »