Google shares slide out-of-hours amid Q3 revenue miss, sexual misconduct reports

Google shares closed higher Thursday, but moved lower after-hours, following the release of its third quarter earnings.

Google shares slide out-of-hours amid Q3 revenue miss, sexual misconduct reports

Google shares ended the US Thursday trading session a little higher. However, the stock slipped in after-hours trade, following the publication of its third-quarter earnings, which showed total sales came in below expectations.

Google was also accused of showing continued support for Android creator Andy Rubin, with a $90 million exit package, despite sexual misconduct claims.

Google shares closed 4.40% higher at $1,103.59, in the US Thursday. However, the stock slid into the red post the US closing bell, after the business published its earnings report.

Google’s Q3 earnings

Total revenues at Google’s parent company Alphabet, grew 21% from a year earlier to hit $33.74 billion, in the third quarter. That was a little below analysts’ expectations. And, while Google ad sales contributed some 86% to that total sales number, growth there slowed to 20% from a 24% increase in the second quarter.

Third quarter profits, however, increased 36% to $9.2 billion.

“Our business continues to have strong momentum globally, led by mobile search and our many products that help billions of people every day,” said Alphabet and Google’s CFO, Ruth Porat. “We remain focused on delivering on the opportunities we see.”

Does Google have a misconduct problem?

Separately from its earnings release, Google was the subject of a New York Times report on sexual harassment. The article claimed that top executives, including Android creator Rubin, were protected from sexual harassment complaints and offered large pay outs to leave the tech giant.

Following the article, CEO Sundar Pichai sent a letter to his employees on the topic. He said that contracts of 48 Google employees, including 13 senior managers, have been terminated over the past two years, with no pay outs.

“Today's story in the New York Times was difficult to read,” Pichai wrote. “We are dead serious about making sure we provide a safe and inclusive workplace.”

“We are committed to ensuring that Google is a workplace where you can feel safe to do your best work, and where there are serious consequences for anyone who behaves inappropriately,” the letter ended.

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