Alphabet Inc (NASDAQ:GOOGL) shares dipped in pre-market US trading on Tuesday after Google’s parent company saw its quarterly results miss consensus expectations.
In the three months ended 30 September, Alphabet recorded revenues of US$40.5bn, up 20% year-on-year, with net income down 23% to US$7bn.
While the Google division was ahead of expectations, with operating income up 12% to US$10bn, its 'Other Bets' areas swung by 23% to an operating loss of US$941mln, well above UBS's estimate for a US$707mln loss.
However, in a note to clients, analysts at UBS said: “We think GOOG reported an across the board solid quarter with no apparent weaknesses versus slightly rising expectations over the past few weeks among investors."
“We don’t see anything in our initial analysis of the results that would change our long-term thesis on the stock,” the broker added, reiterating a ‘buy’ recommendation on Alphabet with a US$1,425 price target.
Shares in Alphabet were down 2% to US$1,267 in premarket New York trading on Tuesday, having closed nearly 2% higher at Monday at US$1,289 after Reuters reported that the internet giant has bid to acquire Fitbit Inc (NYSE:FIT), a move which sent shares in the US wearable device maker up 30% on Monday, hitting US$5.64 at the closing bell.