US$800mln wiped from Alphabet"s market value as first-quarter results disappoint"

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Alphabet's capital expenditures fell 36 per cent compared with past year to $4.6 billion.

A slowdown in Google's ad revenue could be the reason for the missed targets.

Alphabet executives talked up the company's growing prowess delivering "cloud" and AI-based services. Ad revenues came in at $30.7 billion.

In terms of mobile ads this year, Google's bounty should hit 35.4 per cent of the $231.12bn global total.

"We remain focused on, and excited by, the significant growth opportunities across our businesses", she said.

The results sparked concerns that Google's enormously profitable advertising machine might be starting to sputter.

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"This ad sales deceleration was a shocker to the Street that had high hopes coming into earnings", Wedbush Securities analyst Dan Ives told The Post. Its "other revenues" operations, which includes Google's hardware business (phones, speakers, laptops, etc.) and its cloud services business, delivered $5.45 billion in revenue, a 25% uptick from past year.

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Porat teased a hardware announcement along those lines at Google's annual developers conference next week in its home town of Mountain View, California.

"Hardware results reflect lower year-on-year sales of Pixel, reflecting in part heavy promotional activity industrywide given some of the recent pressures in the premium smartphone market."

"We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus past year, or 19% on a constant currency basis", said Ruth Porat, Chief Financial Officer of Alphabet and Google, in a statement. Earnings excluding the fine were $8.3 billion, or $11.90 per share, beating analysts' estimates $10.61 per share for adjusted earnings.

Excluding the impact of fines, Alphabet's first-quarter net profit is $8.339 billion, down 11% from the same period a year ago.

The latest fine imposed by Brussels cited Google's AdSense advertising service, saying it illegally restricted client websites from displaying messages from ad service rivals. It's the third such fine the company has to pay to European regulators.

Shares of Google parent Alphabet (GOOG, GOOGL) have opened 2019 on a strong note, climbing 22% year to date, besting the 17% rise for the S&P 500 Index. At one point, the company's market capitalization sank below $822 billion, a decline of roughly $75 billion, according to Dow Jones Market Data.

The California giant showed widening losses for its "other bets" including the Waymo self-driving vehicle project, Verily life sciences and services for internet for remote parts of the world and drone delivery.