Google parent Alphabet misses Q3 revenue estimates as ad sales slow down

Google parent Alphabet misses Q3 revenue estimates as ad sales slow down

Google parent Alphabet misses Q3 revenue estimates as ad sales slow down

Again, while the Street expected somewhere around $73 billion for the important holiday quarter, Amazon told investors to expect anywhere from $66.5 billion to $72.5 billion.

Amazon's chart shows that the stock is nearing two critical technical levels.

"Alphabet is the ad revenue king, so any softness makes people nervous", said independent technology analyst Rob Enderle. The company has dominated e-commerce in the USA, but faces stepped-up competition from rivals such as Walmart Inc. That figure, which represents full-time and part-time workers but excludes contractors and temporary personnel, is up from 575,700 last quarter and 541,900 a year ago.

Revenue gained 29 per cent to $56.6 billion in the third quarter.

Two of the world's most valuable companies suffered slides in their share prices after releasing their quarterly earnings, declines that fuelled pessimism in Asian and European stock markets on Friday. Amazon has relied on the growth of its Prime members, estimated at about 97 million in the USA, who pay fees in exchange for shipping discounts, video streaming and other services. "If you look at capital leases which is where we spend money for the data centers, it's up only 9 percent year-over-year trailing 12 months, and it was up 69 percent last year at the end of the year".

The company's shares fell by as much as 10pc in late trading.

Investors' focus will be on the company's performance in its Web Services business, which is expected to be a major boost to the company's profitability.

Those results were inflated by the company's acquisition of Whole Foods. It has opened AmazonGo stores - which sell sandwiches, salads and grocery items - in San Francisco and Chicago.

"We're not slowing down - Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100", Bezos said in a statement.

The Waymo operation in Phoenix is in the early stages of testing pricing, Alphabet Chief Financial Officer Ruth Porat said on a conference call on Thursday, noting that some employers were sponsoring workers' rides.

Amazon also introduced the all-new Fire HD 8 tablet, featuring an 8-inch HD display, a quad-core processor, 16 GB of internal storage with support for up to 400 GB more via microSD, up to 10 hours of mixed use battery life, and hands-free access to Alexa.

There were no ratings downgrades from the Wall Street analysts who have nearly universally backed the companies' long-term prospects, but several said there were signs that both were beginning to face tougher competition from tech peers as well as the retail companies Amazon has bullied in recent years.

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