Alphabet Inc (Nasdaq: GOOGL, GOOG), the technology behemoth, failed to meet Wall Street’s expectations for the fourth quarter as the company reported revenue that slightly beat expectations but missed on earnings per share.
Alphabet reported revenue of $32.32 billion compared to $31.86 billion that was expected based on a Thomson Reuters consensus estimate. Alphabet’s earnings per share was $9.70, falling short of the $9.98 based on the consensus estimate from Thomson Reuters.
Shares of Alphabet fell more than 2 percent after the closing bell even though the company’s revenue rose 24 percent year-over-year to $32.3 billion. The tech company’s ads business generated revenue of $27.27 billion in the fourth quarter.
Alphabet revenue for 2017 also rose by 23 percent from a year ago to $110.9 billion.
The company reported that its ads received more clicks than Wall Street expected. While the cost per click, or what advertisers paid, decreased just about in line with expectations, aggregate paid clicks resulted in a 43 percent increase from last year, better than the 42.1 percent increase analysts expected.
The cost per click declined 14 percent from last year, better than the 14.6 percent decrease that was expected.
John Hennessy, who has been a board member since 2004 will be Alphabet’s new chairman.
The company’s executives have expanded the breadth of its business, which now includes a set of other businesses such as its hardware, app store and Google Cloud Platform, which uses artificial intelligence.