Alphabet reported a big drop in quarterly profit.
EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion) fine for favoring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems.
The company’s shares goog , which closed marginally up in regular trading on Monday, fell nearly 3% to $969 after the bell.
The shares had gained nearly 26% this year through Monday’s close.
On a consolidated basis, revenue rose about 21% to $26.01 billion in second quarter ended June 30, beating the analysts’ average estimate of $25.65 billion, according to Thomson Reuters I/B/E/S.
Revenue was boosted by robust demand for advertising on mobile and the company’s popular video service YouTube.
Google’s ad revenue, which accounts for a lion’s share of its business, rose 18.4% to $22.67 billion.
The company faces intensifying competition from social media giant Facebook Inc for advertising dollars. The companies together dominate the online ad market.
This year, Google is expected to generate about $73.75 billion in net digital ad revenue worldwide, a 17.8% jump from a year earlier, according to research firm eMarketer.
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Paid clicks, where an advertiser pays only if a user clicks on ads, rose 52%. Analysts on average had expected a rise of 35.2%, according to data and analytics firm FactSet.
Paid clicks rose 44% in the first quarter.
Revenue from its Google Other unit, which includes Pixel smartphone, Play Store and cloud business, rose 42.3% to $3.09 billion.
The company’s net income fell to $3.52 billion, or $5.01 per Class A and B share and Class C capital stock, in the second quarter from $4.88 billion, or $7 per share, a year earlier.
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Analysts had expected earnings of $4.49 per share.
The company changed the method it reports earnings in the first quarter, focusing on Generally Accepted Accounting Principles (GAAP) earnings instead of non-GAAP results.