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CURRENCY BLUES

Alphabet blames strong US dollar for earnings miss as shares sink

Exterior view of Google Inc. offices in Mountain View, Calif., Thursday, April 29, 2004. Internet search engine leader Google Inc. filed its long-awaited IPO plans Thursday, setting the stage for the company to make its stock market debut, a move that could be months away. (AP Photo/Paul Sakuma)
AP Photo/Paul Sakuma
A surprise miss.
By Alice Truong

Deputy editor

This article is more than 2 years old.

Investors went into Alphabet’s first-quarter earnings with high expectations, and the company fell short.

Shares for Google’s parent company, Alphabet, sunk more than 6% in after-hours trading today (April 21) after releasing its results. The company reported profit of $5.25 billion, or $7.50 a share, far below the $5.54 billion, or $7.96 a share, that analysts were expecting. Alphabet attributed the miss in part to the strong US dollar.

Total revenue increased 17% year-over-year to $20.26 billion. Revenue for the Google segment, which includes the search engine, YouTube, Android, and other properties, increased 17% to $20.09 billion. While Alphabet’s “other bets”—including Nest thermostats, Google’s investing arms, Google X, and life sciences divisions—doubled in revenue year-over-year to $166 million, operating losses widened 3% to $802 million.

Chief financial officer Ruth Porat noted that most of these other bets have yet to generate revenue. “Because other bets’ results aggregate the revenues and expenses from a number of businesses, operating and different industries there is likely to be lumpiness in the reported results,” she said. “We continued to invest across these opportunities [but] doing so in a disciplined way.”

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