The lineups of three of the 11 groups that make up the benchmark S&P 500 index are being reordered as of Monday. Twenty companies in the index, including famous names like Facebook, Alphabet and Netflix, will find a new home.
Alphabet, Facebook, Netflix and others will be in focus on Sept. 24 when they are moved out of the tech and consumer discretionary sectors into a deepened pool of communication and media stocks. In the largest-ever shakeup of the Global Industry Classification Standard (GICS), the telecommunication services sector will be renamed “communication services” and include 18 companies pulled from consumer discretionary and technology, including Netflix, Walt Disney Co. and Twitter.
The Senate intelligence committee said on Wednesday it would hold a hearing next week to look at how social media companies are responding to foreign influence operations, with testimony expected from top executives of Twitter, Facebook and Alphabet.
Alphabet’s Earnings Miss Profit Estimates
Google parent Alphabet Inc. missed quarterly profit forecasts as steady ad sales growth was offset by increased spending to promote its consumer gadgets, YouTube video app and cloud computing services, the technology company said on Thursday.
The Alphabet executive, who has been with Google since 2001, will become a technical adviser and will continue to serve on the company’s board.
Alphabet 3rd Quarter Earnings Beat Estimates
Alphabet Inc. beat projections for third-quarter sales and earnings, after a surge in the number of Google ads helped the internet giant shrug off concerns about rising costs, regulatory assaults and an expensive foray into hardware. Sales for the quarter rose to $22.27 billion and profit was $9.57 a share, the company said. Analysts on average estimated sales of $22 billion on earnings of $8.34 a share.
Exclusives
Alphabet Stock Drops After 2Q Report, Fine
Google parent Alphabet reported a second-quarter profit that fell sharply from a year earlier, hurt by a big antitrust fine in Europe. Alphabet shares slipped in after-hours trading after its cost-per-click number fell 23%, more than the 15% drop analysts expected.
Alphabet Reports Stronger Earnings, Sales
Google parent Alphabet reported quarterly earnings that topped analysts’ estimates and revenue that beat expectations, and announced a more than $7 billion stock buyback authorized this month.
Google-Powered Alphabet’s 2Q Earnings Soar
Google parent Alphabet earned $4.9 billion during the April-June quarter, a 24% increase from the same time last year. After subtracting ad commissions, Alphabet’s revenue climbed 22% to $17.5 billion.
It will still use the Google name for its popular Internet search engine, mapping service and related products. But CEO and co-founder Larry Page said Monday the creation of the new holding company called Alphabet will provide more independence for divisions like Nest, which makes Internet-connected home appliances, and Calico, which is researching ways to prolong human life.
