Alphabet shares fell in Thursday after-hours trade after the company reported earnings and revenue that fell short of analyst expectations. The Google parent company said it saw adjusted first-quarter earnings of $7.50 per share on $20.26 billion in revenue. Analysts expected Alphabet to report earnings of about $7.97 a share on $20.37 billion in revenue, according to a consensus estimate.
After those results were released, the company’s shares fell by about 6 percent in after-hours trading, but then pared some of those losses. The lower-than-expected quarterly results were potentially due to Alphabet’s "other income" line, which was hurt by losses in foreign currency exchange and equity investments. Those figures came in lower than analysts predicted.
Not only Alphabet disappointed. Microsoft reported quarterly earnings missed analysts estimates, while revenues came basically in line. The technology giant posted fiscal third-quarter earnings per share of 62 cents, compared to 61 cents a share in the year-earlier period. Revenue for the quarter came in at $22.08 billion, against the comparable year-ago figure of $21.73 billion. Analysts expected Microsoft to report earnings of 64 cents a share on $22.09 billion in revenue, according to a consensus estimate.
Shares of the tech giant traded more than 4 percent lower in after-hours following the release, and fell as much as 5 percent. Microsoft’s international business was hurt by a strong U.S. dollar, as well as declining PC sales.