Google’s stock returns
Online search engine Google (GOOGL) rose close to 2% in April 2019. The stock is currently trading at $1,166.51, which is 19% above its 52-week low of $977.66 and 10% below its 52-week high of $1296.98. The stock lost 2.7% in the first two days of May.
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Stock fell after first-quarter results
Google announced its first-quarter results on April 29 and reported sales of $36.3 billion, a rise of 16.7% YoY, which was Google’s slowest growth in the last four years, and Wall Street was not impressed.
Google stock has declined 10% in the last three trading sessions since it reported first-quarter results. Wall Street estimated Google would post sales of $37.3 billion in Q1 2019.
Key revenue drivers for Google
Google is still very dependent on ad revenue, which accounted for 84.6% of total sales in the first quarter. Google’s ad business is facing competition from other online platforms including Amazon (AMZN) and Facebook (FB). Google’s ad revenue rose 15.4% in the first quarter. Its Other business segment generated sales of $5.45 billion in the first quarter, indicating growth of 25.1%, which includes sales from Google Cloud, Playstore, and hardware verticals.
Though Google doesn’t report Cloud sales separately, research firm Canalys estimates the company’s market share at 9.5%.