YouTube Ad Revenue Rises Just 5% In Q2 As Alphabet Undershoots Wall Street Targets
deadline.comAlphabet, parent of Google and YouTube, missed Wall Street analysts’ forecasts with $69.7 billion in revenue and earnings per share of $1.21.YouTube ad revenue climbed just 5% from the year-ago period, reaching $7.34 billion.
Last week, downbeat advertising reports from tech firms Twitter and Snap Inc. sent a shiver through the marketplace, suggesting broader disruptions to come for the ad business.
Revenue has flowed steadily into digital platforms over the past couple of years, but all media buys are getting rethought during a period of widespread economic disruptions from inflation to ongoing issues with the supply chain.Sundar Pichai, CEO of Alphabet and Google, pointed to progress in search and cloud operations in the quarter. “As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term,” he said in the company’s earnings release.Search revenue, still the dominant line item on the balance sheet, increased almost 14% over the year-ago period to hit $40.7 billion.Cloud revenue, meanwhile, increased to $6.3 billion from $4.6 billion.While the numbers were universally disappointing, investors may have been bracing for worse.
In after-hours trading, shares in Alphabet perked up more than 2%, past $108, after the earnings news.Earlier this month, on July 15, the company completed a 20-for-1 stock split.
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