Google shares fell 12 percent in morning trading after the company reported its first combined revenue and profit miss in nearly four years, driven in part by a sharp swing into negative free cash flow. The drop, which is the largest in Google’s history, wipes out about $500 billion in shareholder value.
\n\nCNBC reports that shares of Alphabet, Google’s parent company, dropped about 12 percent as investors absorbed third-quarter results that fell short of Wall Street’s expectations on nearly every major line. Adjusted earnings came in at $2.67 per share, against analyst forecasts of $3.02. Revenue reached $127.58 billion, below the $128.22 billion analysts had projected, even though it marked 25 percent growth from the same period a year earlier.
\n\nNet income fell to $26.17 billion, or $2.12 per share, down from $34.98 billion, or $2.87 per share, a year ago. Operating income totaled $40.58 billion, missing FactSet’s forecast of $43.19 billion.
\n\nThe most jarring number was free cash flow, which turned negative at $9.07 billion. Analysts had expected positive free cash flow of $2.70 billion. Capital expenditures, the amount the company spends on massive projects like data centers, came in at $51.36 billion, actually below the $55.09 billion analysts…
Original source: https://www.breitbart.com/tech/
