15 Billion Reasons Alphabet Shares Are Sinking After Reporting Strong Earnings Growth
Alphabet shares are down, despite reporting 24% revenue growth in the second quarter.
Overview
Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), the parent company of Google, once again delivered strong earnings growth in the second quarter of the year, but the stock sank after management announced plans to increase spending on artificial intelligence infrastructure.
Shares of Alphabet traded roughly 7.1% lower, as of 10:24 a.m. ET. Second-quarter revenue of nearly $119.8 billion rose 24% year over year, while operating profit of $40.7 billion increased 34%.
Details
Revenue topped Wall Street expectations by close to $3 billion, while adjusted earnings per share of $2.85 missed consensus estimates by $0.04.
Source
Originally published at www.fool.com.
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