Shares of Alphabet (GOOGL) - Get Alphabet Inc. Class A Report, the parent company of Google, dropped Tuesday in after-hours trading despite the technology giant reporting its third-quarter revenue beat analysts’ estimates.
Alphabet shares fell 0.8% after hours to $2,762.01 on news that its quarterly revenue rose by 41% to $65.12 billion, exceeding an estimate of $63.34 billion predicted by analysts surveyed by Refinitiv.
The Google parent reported net income of $18.93 billion for the quarter ending Sept. 30 with earnings per share of $27.99, beating estimates of $23.48.
“Five years ago, I laid out our vision to become an AI-first company,” Alphabet CEO Sundar Pichai said in a statement. “This quarter’s results show how our investments there are enabling us to build more helpful products for people and our partners.
“Ongoing improvements to Search, and the new Pixel 6, are great examples. And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organizations collaborate and stay secure.”
Google’s advertising revenue rocketed in the third quarter, rising 43% to $53.13 billion compared to $37.09 billion in the same period of 2020. Google Cloud revenue rose almost 45% in the quarter to $4.99 billion compared to $3.44 billion in the same period of the previous year.
“Our consistent investments to support long-term growth are reflected in strong financial performance, with revenues of $65.1 billion in the quarter,” Alphabet CFO Ruth Porat said in a statement. “We continued to deliver across our business by providing helpful and valuable experiences for both consumers and our partners.”