Shares of Google GOOGL fell Monday, after the search giant posted revenue that missed estimates, but earnings that beat.
The stock was falling 4.36% to $1,418 a share in postmarket trading, after having risen 3.48% in regular trading hours.One key takeaway:
For the first time, Google revealed separate revenues for its Google Cloud division ($2.61 billion), as well as that for its YouTube video service ($4.72 billion).
Earnings per share for the December quarter came in at $15.35 on a GAAP basis, beating Wall Street estimates of $12.49 and rising 20% year-over-year. Revenue was $46.075 billion, missing analyst estimates of $46.927 billion and rising 17%.
The company’s operating margin, which has been declining in the past few years, was 20%, missing estimates of 21%.
“Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,” said Sundar Pichai, Alphabet and Google CEO. “I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate.”