SpaceX Stake Write-Down Deepens Alphabet's Q3 Miss; Shares Fall 10.7% After Hours
GOOG is trading near its 52-week low of $267.17 (7.8% above the low) on elevated volume (1.9× avg).
Summary
Alphabet's Q3 net income came in at $26.2 billion versus the $37 billion analysts expected, and roughly $11 billion of pretax mark-to-market losses on its SpaceX stake sat inside the $8.2 billion 'other' loss line. The company holds about 550 million SpaceX shares, which closed the quarter near $151, down from about $171 at the end of Q2. Excluding that write-down, earnings would have been closer to $2.80 a share — still short of the $3 consensus, but far better than the $2.12 headline EPS. Operating profit of about $41 billion missed by roughly $2 billion, with services short by about $1 billion while cloud beat by about $1 billion; sales of $128 billion were in line. Shares fell 10.7% in after-hours trading, and the stock was up just 4% year to date through Wednesday's close, trailing the S&P 500 by about nine percentage points.
At the time of this announcement, GOOG was trading at $287.94 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $267.17 to $404.47. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.