Alphabet (NASDAQ: GOOG) missed analysts estimates for the third quarter, sending shares down 8% in after-hours trading.
Google’s parent company has engulfed by a turbulent few months after it was found to cover-up a major security flaw in its social network Google+, as well as its handling of sexual misconduct allegations.
Revenues for the group were up by 21% compared to the third quarter of 2017. The revenues totalled to $33.7 billion (£26.3 billion) and profits grew by 36% to $9.2 billion.
George Salmon, who is an equity analyst at Hargreaves Lansdown said that Alphabet’s revenue was “slightly behind expectations”.
The results were released just after the company’s CEO, Sundar Pichai, admitted that the company had fired 48 people for sexual harassment including 13 who were senior managers.
Alphabet was also found trying to cover up allegations related to Android founder Andy Rubin, who was paid $90 million to leave.
Rubin tweeted that The New York Times report contained “numerous inaccuracies about my employment at Google and wild exaggeration about my compensation”.
“Specifically, I never coerced a woman to have sex in a hotel room. These false allegations are part of a smear campaign to disparage me during a divorce and custody battle,” he said.
“Also, I am deeply troubled that anonymous Google executives are commenting about my personnel file and misrepresenting the facts.”
Pichai sent a letter to staff on Thursday after the report and insisted that the company took a “hard line” in sexual misconduct allegations.
Earlier this month, Interbrand ranked Google in the top two most valuable brands.
Scott Galloway, a professor at NYU’s Stern School of Business, showed confidence in the tech giant, despite missing forecasts.
“From an investor’s standpoint, you are stupid not to own these stocks,” he said. “This company has incredible earnings power – because it is awesome to be a monopoly in a growing economy. The only thing standing between Google and continued growth is the government.”
