The company, which owns Google among others, reported a revenue of $39.3 billion. This is up a massive 22 percent compared to the same period last year.
What is interesting, however, is the fact that Alphabet’s stock price saw an unusual dip, especially for a company which seemingly performed so well during the past financial quarter.
More specifically the firm saw its stock drop to $12.77 per share during after-hours trading yesterday.
Delving deeper TechCrunch noted that Alphabet would have missed analyst estimates for the quarter had it not been for a curiously termed $1.3 billion unrealised gain, related to a “non-marketable debt security.” Unfortunately the company did not go into further detail on this aspect, which has naturally raised a few eyebrows.
In terms of which areas of the business performed well, advertising saw a 20 percent year-on-year spike of $32.6 billion and “other” (which compromises of cloud and hardware among others) raked in an estimated $6.49 billion, which is up 31 percent compared to last year’s figures.
It wasn’t all coming up roses for Alphabet though, with ventures such as Waymo, Fiber and Verily bundled into the “other bets” segment, which saw losses of around $1.3 billion. This is understandable though, considering these types of ventures often require a large amount of investment before they begin to yield dividends.
On the whole, however, the fact that Alphabet’s stock saw a dip despite posting a strong quarter in terms of revenue, could point to a few underlying issues that they need to address.
As such it should be interesting to see if this oddity occurs for the first quarter of 2019 too.