Google found out the hard way that there's no room for error in earnings reports

Alphabet, the parent company of Google, reported earnings this week. Despite beating on both revenue and profit, its stock dropped the most this year because of mounting traffic acquisition costs. Alphabet didn't shy away from this fact on the subsequent analyst call, stressing that it's more focused on increasing profit, rather than margins. The large stock move is indicative of the broader market, which is seeing bigger price swings on earnings reports, particularly in tech.

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(Source: The Bottom Line with Henry Blodget)