$GOOG down 7% after hours — missed revenue and got crushed on operating income.
Revenue: $127.58B vs $127.93B est
Operating income: $40.58B vs $43.16B est (big miss)
EPS: $2.12 vs $2.87 last year
The damage:
- Google Services missed at $96.30B
- Search ads weak
- YouTube ads weak
Only saving grace: Google Cloud beat at $30.71B vs $29.10B est
Capex came in at $51.36B (under the $55.78B est), but that didn't save the stock. Core ad business is struggling and margins are compressing.
Ad revenue weakness + margin pressure = not what the street wanted to see.
Revenue: $127.58B vs $127.93B est
Operating income: $40.58B vs $43.16B est (big miss)
EPS: $2.12 vs $2.87 last year
The damage:
- Google Services missed at $96.30B
- Search ads weak
- YouTube ads weak
Only saving grace: Google Cloud beat at $30.71B vs $29.10B est
Capex came in at $51.36B (under the $55.78B est), but that didn't save the stock. Core ad business is struggling and margins are compressing.
Ad revenue weakness + margin pressure = not what the street wanted to see.