Google -12% Tras Presentar Resultados: Qué Ha pasado

AI-generated source summary

Google's Q3 2023 earnings report showed a 12% drop after results were announced. Despite a 103% year-over-year growth in Google Cloud, the stock experienced a significant decline. The company's revenues grew by 24.7% year-over-year to $127.577 billion, but this was slightly below market expectations. A major concern was the 25.2% year-over-year drop in net income, which fell to $26.170 billion. This decline was partly attributed to an $8.221 billion loss from equity securities, specifically related to an adjustment in the valuation of SpaceX. If this loss is normalized, the diluted EPS would have been $2.67 instead of the reported $2.12, still missing analyst expectations of $3.01. The growth in Google Search, while still double-digit at 12%, is decelerating, a trend observed in recent quarters and expected to continue into 2024, raising concerns for investors. Furthermore, Meta's advertising revenue has increased its share of the market from 52% to 77% of Google's, indicating a competitive pressure. The free cash flow for the quarter was negative at -$9.065 billion, primarily due to significant CAPEX investments in AI, exceeding the cash generated by the business. This combination of decelerating growth in core segments, external pressures, and negative free cash flow contributed to the stock's downturn.

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