Alphabet exceeds market expectations, reporting profits

Alphabet, Google’s parent company (GOOG, GOOGL), released its third-quarter earnings report after the market closed on Tuesday. The company outperformed analysts’ predictions regarding revenue and earnings per share; however, a disappointing performance from Google’s cloud business led to a decline in the company’s stock during pre-market trading.

In the third quarter of 2023, the company reported profits of $1.55 per share, surpassing the anticipated $1.45 per share, as stated by the market research institution “LSEG,” formerly known as Refinitiv.

During the same quarter, the company’s revenues amounted to $76.69 billion, exceeding the market research firm’s expectations of $75.79 billion, as projected by LSEG.

YouTube, a video social networking site owned by Alphabet, saw a boost in ad revenues, reaching $7.95 billion, compared to the projected $7.81 billion for the quarter ending on September 30.

However, Google’s information cloud storage and retrieval services (Google’s cloud business) generated $8.41 billion in revenue, falling short of the LSEG’s, formerly known as Refinitiv, estimated $8.64 billion.