The parent company of Google, Alphabet, released their Q2 2019 financials yesterday. Overall the company still had revenue of $36 billion but that fell short of analysts expectations. The company blamed weaker than expected Pixel 3 phone sales along with ad revenue for the company also fell for the fourth consecutive quarter.
Overall, revenue for Google was $36.34 billion for the quarter. That is lower than the expected $37 billion but was still a 17% increase when compared to the same quarter in 2018. Net income was $6.6 billion which was down from the $9.4 billion for the same quarter last year.
Advertising revenue for Q2 2019 was lower than expected too. The company reported $30.72 billion which was less than the $32.6 billion expected. It is also lower than the $32.64 billion the company reported in the last quarter of 2018.
As expected, Wall Street has punished Alphabet stock this morning. In pre-open trading, GOOGL was down 7.6%.
Attention in the tech world now turns to Apple, who will be announcing their quarterly results later today. It is expected that the company will be in the middle of expected guidance, which will also likely lead to a bit of a stock drop. However, given Alphabet’s lackluster performance against expectations, that could prove to be a safety net for Apple stocks.