The daily business briefing: February 5, 2019

Alphabet posts strong earnings but shares fall, GM launches a 4,000-job layoff round, and more

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(Image credit: General Motors logo in Michigan)

1. Alphabet shares fall despite better-than-expected earnings

Shares of Google-parent Alphabet dropped by about 3 percent in after-hours trading on Monday after the tech giant reported quarterly earnings that beat expectations but said its advertising prices were falling as costs rise. Earnings were $12.77 per share, exceeding expectations of $10.82, according to Refinitiv consensus estimates. Revenue hit $39.28 billion, narrowly beating Refinitiv consensus estimates of $38.93 billion. Cost per click on Google properties fell by 29 percent compared to last year, and by 9 percent compared to last quarter, potentially raising concerns that the lower amounts Google can charge advertisers indicates its power is eroding.

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