Google parent company Alphabet reported its best-ever quarter on Tuesday, but its stock price plunged 9% in after-hours trading. The company’s revenue grew 41% year-over-year to $61.88 billion, beating analysts’ estimates of $58.8 billion. Alphabet’s net income also grew 68% to $18.5 billion.
The strong results were driven by Google’s search and advertising businesses, which continue to benefit from the pandemic-induced surge in online activity. Google’s search revenue grew 44% to $35.3 billion, while its advertising revenue grew 46% to $54.48 billion.
However, Alphabet’s stock price fell sharply after the company reported that its YouTube revenue grew only 14% to $7.21 billion. Analysts had expected YouTube revenue to grow at a much faster pace.
Alphabet’s stock price is not the only one that has been plunging in recent days. The stock prices of other tech giants, such as Apple, Amazon, and Microsoft, have also fallen sharply. This sell-off has been driven by concerns about rising inflation, interest rate hikes, and the war in Ukraine.
Despite the recent sell-off, Alphabet’s stock price is still up 25% over the past year. The company is a leader in the digital advertising market, and it is well-positioned to benefit from the continued growth of the internet.
Here is a breakdown of Alphabet’s revenue by segment:
* **Google Services:** $55.1 billion, up 42% year-over-year
* **YouTube Advertising:** $7.21 billion, up 14% year-over-year
* **Cloud:** $5.8 billion, up 45% year-over-year
* **Other:** $3.77 billion, up 11% year-over-year
Alphabet’s operating income grew 56% to $21.3 billion, and its diluted earnings per share grew 69% to $29.99. The company also announced a new $70 billion stock buyback program.
In a statement, Alphabet CEO Sundar Pichai said, .
