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Google earnings sent the stock plunging 8% yesterday (April 30) thanks to poor growth in YouTube. And we don't care.
News broke late Monday night that Alphabet Inc.'s (NASDAQ: GOOGL) Q1 2019 report showed its slowest revenue growth since 2015. The media jumped on how YouTube may have played a big role in decreased growth.
Alphabet structures its business in such a way that it doesn't reveal any specific details about Google, YouTube, or any of its other properties. Rather, the company just reports its overall numbers – meaning investors have no knowledge on whether YouTube is profitable or not beyond what Alphabet reveals. That isn't much.
GOOGL earnings came up short of the predicted $10.60 per share on revenue of $30.04 billion. Its Q1 2019 revealed earnings were $9.50 per share with revenue of $29.48 billion.
Many investors on Wall Street are pointing to YouTube as the root cause. But the estimates didn't seem to take the $1.7 billion fine GOOGL paid in Europe into account.
If it hadn't been for the fine over advertising problems, GOOGL's earnings would have been $11.90 per share. Plus, the company's revenue grew by 18.6% in the last quarter alone.
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Here's what GOOGL's latest financials tell us – and why we aren't bothered by their results. In fact, there's something very unique about this stock…
Why Google's Earnings Slowed in Growth
About the Author
Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.