Alphabet Soup 🍵

by 30 Apr, 2019

Alphabet Soup 

A bad earnings miss yesterday from Google-parent, Alphabet, sparked concerns that Amazon’s increasing reach into the tech world is sucking revenue out of the rest of the digital economy…They may not be wrong there!

Alphabet shocked investors with a dismal EPS miss by a stunning $2.93 and a revenue shortfall of $1.04bn compared to analysts estimates, driving the stock 7.5% lower on the day. The fallout also dragged prominent tech ETFs, such as the Invesco QQQ Trust, up to 0.6% lower in the aftermath.

This was no doubt a massive shock to markets after Facebook produced such solid earnings, but who’s to blame for Alphabet’s catastrophe?

It would seem that Amazon is the main culprit guilty of swallowing up a sizable portion of Alphabet’s ad revenue as consumers increasingly head straight to Amazon to shop instead of perusing google first. On the flip-side, Amazon reported a healthy 30% increase in its digital franchise, aided by this shift in consumer appetites. 

So, its not only the smaller tech companies at risk when it comes to the Amazon phenomenon. Even the big dogs are having to re-evaluate their business models to compete. It’s a dog eat dog world out there, and Amazon is always hungry…especially when it comes to Alphabet soup.

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Invstr
(2K)
Get the app
Share This