A rebound in digital advertising led to an uptick in revenue and profit for Alphabet, Google’s parent company, but investors were underwhelmed by its cloud computing business, which badly trails those of rivals Microsoft and Amazon.
Alphabet reported $76.7 billion in quarterly sales, up 11 percent from a year earlier, and roughly in line with analysts’ estimate of $76 billion, according to data compiled by FactSet.
The internet giant said that its profit jumped 42 percent to $19.7 billion, exceeding Wall Street expectations of $18.5 billion.
“Investors were disappointed by the relatively weak performance at its Google Cloud Platform, which is at risk of falling further behind” Microsoft Azure and Amazon Web Services, Jesse Cohen, an analyst at investing.com, wrote in a note.
Persons:
FactSet, Jesse Cohen
Organizations:
Microsoft, Google, Web Services, investing.com