Alphabet revenue slump weighs on Wall Street while Australian shares gain

Wall Street indices traded lower on Thursday following a revenue miss by Google parent company Alphabet, SMH.com.au, Investing.com News, Reuters, Seeking Alpha, and The Globe and Mail reported. The drop in Alphabet stock dragged down the broader market after the company reported lower summer revenue growth than financial analysts expected. [1][2][4][5][6]

SMH.com.au reported that the company's financial report renewed concerns among market participants about whether its large capital investments in artificial intelligence technology will yield expected profits. Seeking Alpha added that the slump in Alphabet shares broke Wall Street's recent winning streak as concerns regarding inflation also reignited. [1][5]

In Australia, the S&P/ASX 200 index rose 52.5 points, or 0.6 per cent, in early trade after gaining 0.5 per cent on Thursday, according to SMH.com.au. The Australian dollar fell 0.3 per cent against the United States currency to trade at US70.34¢. [1]

In European monetary policy developments, the Financial Times and WAtoday reported that European Central Bank President Christine Lagarde announced her early departure from the central bank. The Financial Times added that the European Central Bank held interest rates steady during the meeting. [7][8]

As FTMQ Business reported earlier, Alphabet previously reported quarterly revenue of $127.6 billion and a profit drop of 25 per cent. In a separate earlier report, FTMQ Business noted that European Central Bank President Christine Lagarde is scheduled to step down from her position on February 7. [15][16]