Diverging fortunes at Alphabet and Amazon. Google’s parent company beat revenue and profit expectations on the strength of its core search and YouTube businesses, sending shares up modestly. Amazon, on the other hand, fell short of what analysts were expecting, despite growth in its cloud computing unit, sending shares down 5%.
Alphabet reported that revenue hit $22.45 billion during the quarter, a 20% increase from a year earlier, in some part due to advertising buys for the upcoming US presidential election, according to Google CEO Sundar Pichai. The results beat analyst estimates of $22.05 billion for the quarter.
For Amazon, the e-commerce giant’s cloud-computing division continued to grow at a healthy clip in the third quarter, up 55% from a year earlier, according to results released today. Over the last four quarters, the segment has generated $11.1 billion in revenue, though its quarterly growth has been slowing year-on-year since 2015.