Alphabet Shares Fall After Q1 Sales Miss

Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) shares took a hit after reporting a first-quarter earnings beat and sales miss.

Adjusted first-quarter earnings came in at $11.90, beating estimates by $1.32. Sales came in at $36.43 billion, missing estimates by $910 million. Sales excluding traffic acquisition costs was $29.48 billion.

"We delivered robust growth led by mobile search, YouTube, and Cloud with Alphabet revenues of $36.3 billion, up 17% versus last year, or 19% on a constant currency basis," said Ruth Porat, Chief Financial Officer of Alphabet and Google. "We remain focused on, and excited by, the significant growth opportunities across our businesses."

Other Highlights

• Revenues increased 17 percent year-over-year
• Operating margin of 18 percent
• Effective tax rate was 18 percent
• Employee headcount increased 18,409

Alphabet Class A stock closed Monday's session at $1,296.20 per share. The stock was down about 4.5 percent in after-hours trading.

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