Still, the company’s sales beat analyst expectations, and the stock is up 1.8% in after-hours trading.
Alphabet noted a gradual improvement in their ads business and a strong bump in the growth of Google Cloud. Profit margins for the search and online advertising giant slipped from a year earlier, but earnings came in well ahead of forecasts.
Shares gained 1.3% in after-hours trading. Before the results, the stock had risen 15% in 2020.
Amazon posts better than expected results
Amazon also beat expectations. Revenue rose 40% to $88.9 billion which was better than forecast, according to Factset. The increase was driven by customers who have heavily relied on online shopping more than ever during the coronavirus pandemic.
The per-share earnings also surpassed expectations. Amazon reported a net income of $5.2 billion and EPS of $10.30.
Shares gained 4.4% in after-hours trading. Before the results, the stock had risen 65% in 2020.
Amazon $4 billion on COVID-19 costs; cloud-computing sales slightly below estimates Bezos statement
In a statement from CEO Jeff Bezos Amazon confirmed earnings and COVID costs: “As expected, we spent over $4 billion on incremental Covid-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand—purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners.”