Alphabet rakes in a $26 billion quarter, but the stock is sliding

Google's parent company Alphabet beat expectations for its second-quarter earnings on the top and bottom lines, but investors who have bid up the stock nearly 30% this year wanted more and the shares in the company slid after the announcement.

"I think people were hoping for a bigger beat on the top line, and we didn't get that," Ben Schachter, an analyst at Macquarie told Business Insider.

The rising numbers of searches from smartphones in particular, which require Google to share ad revenue with partners, appear to be eating into Google's revenue and crimping its growth.

Alphabet's stock fell about 3% in after-hours trading Monday.

(BUSINESS INSIDE)