Here’s Why Alphabet’s Stock Is Down Today

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Updated: | Originally published: ;

Google parent company Alphabet’s stock fell about 5% in after-hours trading Thursday after the company posted weaker-than-expected results for the first quarter of 2016.

Alphabet posted adjusted Q1 earnings of $7.50 per share on $20.26 billion in revenue. Analysts polled by Thompson Reuters expected the Mountain View, Calif. firm to report earnings of around $7.97 per share and $20.37 billion in revenue.

Still, there are bright spots for Alphabet investors. Overall revenues are up 17% year-over-year, for instance. But losses from the company’s “Other Bets” category, which includes “moonshot” efforts like self-driving cars and smart home technology, grew nearly 27%. The cost that advertisers pay Alphabet when a user clicks on an ad, meanwhile, is down 9% on the year.

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