Why Alphabet Stock Is Falling Today

Alphabet Inc GOOG shares are trading lower Wednesday morning after the company reported worse-than-expected financial results.

Alphabet said third-quarter revenue increased 6% year-over-year to $69.09 billion, which missed average analyst estimates of $70.91 billion, according to Benzinga Pro. Alphabet's Search division generated $39.54 billion, YouTube ads totaled $7.07 billion and the Google Network division added $7.87 billion within the Google Ad segment.

Alphabet reported quarterly earnings of $1.06 per share, which missed average estimates of $1.27 per share.

“We’re sharpening our focus on a clear set of product and business priorities. Product announcements we’ve made in just the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetize YouTube Shorts," said Sundar Pichai, CEO of Alphabet. 

"We are focused on both investing responsibly for the long term and being responsive to the economic environment."

Related Link: Alphabet Misses On Q3 Revenue, EPS; YouTube, Network Revenue Decline. Here's What's Next

Analyst Assessment: Several analysts adjusted price targets on Alphabet following the company's quarterly results.

• Keybanc analyst Justin Patterson maintained Alphabet with an Overweight and lowered the price target from $120 to $118.
• Credit Suisse analyst Stephen Ju maintained Alphabet with an Outperform and lowered the price target from $134 to $128.
• JP Morgan analyst Doug Anmuth maintained Alphabet with an Overweight and lowered the price target from $136 to $115.
• Mizuho analyst James Lee maintained Alphabet with a Buy and lowered the price target from $150 to $140.
• RBC Capital analyst Brad Erickson maintained Alphabet with an Outperform and lowered the price target from $135 to $130.

GOOG Price Action: Google has a 52-week high of $152.10 and a 52-week low of $95.27.

The stock was down 6.39% at $98.25 at time of publication.

Photo: Pexels from Pixabay.