Alphabet’s Profit Tanked 27.7 Percent After $2.7 Billion EU Fine
Google’s parent company, Alphabet Inc., incurred a 27.7 percent drop in quarterly profit Monday as a result of a record-setting $2.74 billion fine imposed on Google by the European Union’s antitrust regulator.
The European Commission slapped Google in late June with the record fine for favoring some of its price-comparison search results over those of its rivals.
Google’s shares fell to $969 at the closing bell Monday and sank to roughly $967 a share in after-hours trading. Shares of Google have gained roughly 26 percent since Jan. 3, 2017.
The company is also generating a fair amount of revenue from its paid click advertisements. Paid clicks rose 44 percent in the first quarter of 2017, and are up 52 percent on the year.
While its share price has survived the fine, Alphabet’s net income fell to $3.52 billion in the second quarter of 2017. The company notched $4.88 billion in the second quarter of 2016.
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