Alphabet’s stock is down a bit after the company reported third quarter revenues that were slightly less than analyst expectations.
- The Google umbrella company reported revenues of $33.7 billion, while Wall Street had expected $34.04 billion. Third quarter net income was $9.19 billion.
- Google’s advertising business contributes roughly 70% of Alphabet’s revenue, and it brought in $28.95 billion in revenues for the September-ending quarter.
- Alphabet stock is trading down $3.50 in after-hours trading. This may reflect some anxiety among Alphabet investors that Amazon is a growing threat to Google’s traditional advertising and search businesses.
“We’re seeing a larger than expected slowdown in Google properties’ revenue, representing its core search business,” said eMarketer analyst Monica Peart in an email to Fast Company. “This is likely related to the ramp-up in competition from Amazon, as consumers increasingly turn to the e-commerce giant for their product searches.”
Related: Should we break up the tech giants? Not if you ask the economists who take money from them
And yet Amazon has its own problems. The company reported lower-than expected revenues and fourth-quarter guidance Thursday, resulting in an after-hours stock price drop of over 7%.
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