At 11:08 a.m. ET, the Dow was down 126.48 points, or 0.48%, at 26,427.91. Of this year's revenue, 84.5% came from advertising whereas it accounted for 85.5% last year.
"Google Cloud Platform remains one of the fastest growing businesses in Alphabet with strong customer momentum reflected in particular in demand for our compute and data analytics products".
Investors will also pay close attention to the next two rounds of U.S. Ads for mobile devices bring in less money.
Still, the results sparked concerns that Google's enormously profitable advertising machine might be starting to sputter.
"This ad sales deceleration was a shocker to the Street that had high hopes coming into earnings", Wedbush Securities analyst Dan Ives told The Post. She also said cloud led the overall company's growth in headcount, both in engineering and sales. This counts the money it makes from hardware like the Pixel phones and Home connected devices, and is at $5.4 billion this quarter compared to $4.3 billion the same period previous year.
"We feel very positive about the enormous opportunities ahead involving Search and Assistant, capturing new ad budgets, cloud computing, AI and other areas", said CEO Sundar Pichai in a conference call with analysts.
Socialists lead Spain vote as far right gains
Ciudadanos leader Albert Rivera told supporters on Sunday night his party would lead the parliamentary opposition to Sanchez. Podemos leader Pablo Iglesias said on Sunday evening that he would be willing to "work towards a coalition government".
"Hardware results reflect lower year-on-year sales of Pixel, reflecting in part heavy promotional activity industrywide given some of the recent pressures in the premium smartphone market."
Alphabet reported a first-quarter profit of $8.3 billion, down 6 percent from $8.9 billion in the year-earlier period.
Not counting the $1.7 billion fine, earnings would have hit $11.90 a share.
Alphabet posted a net income of $6.65 billion in the first quarter, which was lower as a result of an European Union fine of 1.5 billion euros ($1.7 billion).
The latest fine imposed by Brussels cited Google's AdSense advertising service, saying it illegally restricted client websites from displaying messages from ad service rivals. Other regulators have discussed forcing companies to step up monitoring of user content. Alphabet's shares fell about 7% in after-hours trading.
Net revenue excluding traffic acquisition costs (TAC) was expected to be at $30.06 billion.
Revenue was up year-over-year in Alphabet's "moonshot" Other Bets category, which includes Waymo, Fiber, Verily, and Alphabet's other healthcare-driven initiatives.