INTERNATIONAL - Wall Street punished Google on Tuesday for managers’ refusal to give details of changes made to its ad platform in first-quarter results, following a rare miss of expectations for revenue due to a cleanup of YouTube content.
Eight brokerages cut their price targets for the platform’s owner Alphabet Inc after the release of its results on Monday, helping knock 8 percent - or around $70 billion - off one of the New York market’s most popular stocks.
Much of the commentary focused on Google’s drive, like other social media companies including Facebook Inc, to remove fake and harmful content from its platforms, and the rising costs of doing so.
In a conference call with analysts on Monday, the company’s management talked about making hundreds of product changes every quarter, but refused to give examples of changes, making analysts suspicious that the company may be hiding a trend that points to more dramatic damage to future growth.
“The fact is we aren’t sure what changes GOOGL made in the quarter that drove the deceleration and this is something the Street must figure out,” Morgan Stanley analysts said.