Google's parent company Alphabet and Microsoft have failed to meet the first quarter expectations. Microsoft received the biggest blow, with a sizeable profit drop compared to the year before.
Google shareholders not satisfied
Alphabet's turnover did grow 17 % to 20.6 billion dollars (18.3 billion euro), while net profit also grew from 3.5 to 4.2 billion dollars (3.7 billion euro). Google's ad revenue grew 17 %, while the company search engine profit increased by 21 %. However, Alphabet made an 802 million dollar (710 million euro) loss in its Other Bets division, where it works on driverless cars and smart thermostats.
Despite turnover and profit growth, Alphabet shareholders were not satisfied. After the results were published, the share dropped 5 % on the stock exchange.
Turnover and profit drop for Microsoft
Microsoft's numbers were not as positive as Alphabet's: turnover dropped from 21.7 % to 20.53 billion dollars (18.2 billion euro), while profit dropped about 25 % to 3.76 billion dollars (3.3 billion euro).
However, the company did manage to boost its cloud-based turnover 3 %, insufficient to compensate for the weaker desktop computer sales and the worse than expected results of the new Windows version. Microsoft says its lower profit is also due to higher-than-expected taxes.