Shares of Alphabet (GOOGL) - Get Report were sliding 2.8% to $971.10 in after-hours trading on Monday after the the internet giant posted better-than-expected second-quarter results, but saw its profits fall year-over-year to due its hefty antitrust fine. Expectations were running high, too, following the internet giant's 25% share price so far this year.
For further coverage of Alphabet's quarterly results and earnings call, click on over to TheStreet's Eric Johnsa's live blog.
The Google parent said revenue jumped 21% year-over-year to $26.01 billion, which surpassed Wall Street's expected $25.6 billion. Earnings were $5.01 per share, beating analysts' projected $4.44 per share.
The better-than-expected results were seemingly overshadowed by profits sliding 27.7% year-over-year, caused by a one-time $2.74 billion antitrust charge handed down from the European Commission. In June, Europe's foremost antitrust watchdog slapped Alphabet with a record-breaking fine for favoring its own shopping services over those of rivals. Prior to the fine being announced in late June, Wall Street was looking for earnings of $8.05 per share.
Paid clicks on Google's ads rose 52% from the year earlier, while Wall Street expected paid clicks to jump 37.2% year-over-year. That's an increase from the prior quarter, where paid clicks increased 44%.
Cost per clicks, a key metric that measures the average price each click, continued to fall during the quarter. Total cost per click slid 23% year-over-year, which was greater than analysts' projected decline of 16.4%.
Google's Other Bets category (which includes moonshots like Verily and Waymo) saw its revenues tick higher year-over-year to $248 million. Losses narrowed to $772 million, compared to a loss of $855 million it reported one year earlier.
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