Google parent Alphabet posts sales miss but posts YouTube, Cloud revenue in rare move

Sundar Pichai, CEO of Alphabet and Google, touted the company's investments in the past quarter, but Wall Street punished the stock in the extended session after a revenue miss.

Shares tumbled about 3 percent after closing at $1,482 and change.

Ticker	Security	Last	Change	Change %
GOOGL	ALPHABET INC.	171.49	+2.54	+1.50%

The search giant posted $46.08 billion in revenue, missing estimates of $46.94 billion, while profits were stronger coming in at $15.35 per share, exceeding the $12.53-per-share forecast among analysts.

Pichai, in the earnings materials, noted: “Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet."

This is Pichai's first quarter since founders Larry Page and Sergey Bring relinquished their roles.

GOOGLE CO-FOUNDERS LARRY PAGE, SERGEY BRIN STEP DOWN AS EXECS OF PARENT ALPHABET

In a first, the company disclosed key figures for YouTube, which earned $15 billion in annual revenue, and Cloud, which averaged $10 billion.

The disclosures for these key businesses are an evolving strategy, according to CFO Ruth Porat. “To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud," she clarified.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Google's Cloud business is an important priority for the tech giant, which is trailing rivals Microsoft and Amazon in the space. Microsoft recently won the lucrative Pentagon Cloud contract known as Jedi.

AMAZON CEO JEFF BEZOS GETS RICHER AS COMPANY TOP $1 TRILLION

Ticker	Security	Last	Change	Change %
AMZN	AMAZON.COM INC.	210.71	+2.82	+1.36%
MSFT	MICROSOFT CORP.	430.98	+7.52	+1.78%

Both tech giants recently posted quarterly results that smashed Wall Street expectations.

CLICK HERE TO READ MORE ON FOX BUSINESS