Google owner Alphabet misses sales forecasts

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Reuters

Google’s parent company, Alphabet, saw its shares drop in after-hours trading after the internet giant missed revenue forecasts.

Alphabet, which also owns YouTube, reported $36.3bn (£28bn) in sales for the first quarter, below expectations of $37.33bn.

Profits also fell during the three months to 31 March.

It was impacted by a fine from the European Commission for blocking rival online search advertisers.

Google had to pay €1.5bn (£1.3bn) after it was accused of abusing its market dominance by restricting third-party competitors from displaying search adverts between 2006 and 2016.

Including the fine, Alphabet’s operating profit dropped to $6.6bn from a previous $7.6bn.

Alphabet’s sales rose by 17% compared to the first quarter of last year, but its shares still dropped by more than 5% in after-hours trading.

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