Google misses earning expectations as YouTube ad sales drop
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Google's parent Alphabet reported earnings that missed expectations in its quarterly report Tuesday, though touted growth in its search and cloud businesses.
The big picture: Throughout 2022, Google has faced privacy lawsuits brought by states, large developer settlements, hefty international fines and accusations that the search giant has struggled to innovate.
Details:
- Alphabet reported revenue was $69 billion this quarter, a 6% increase year-over-year. Expectations set revenue at $70.6 billion, per CNBC.
- Alphabet reported YouTube garnered $7.07 billion in ad sales for the quarter, a 1.9% decline. It's the first year-over-year drop in at least two years.
- Google Cloud revenue was $6.8 billion, a year-over-year increase of 38%.
- Per-share earnings were $1.06, compared with $1.25 expected, per CNBC.
- Alphabet's shares fell $6.12 in after hours trading to $98.36, or a drop of about 5.86%.
Between the lines: Google has initiated a significant number of cost-cutting initiatives over the past few months, including shuttering its video game streaming service Stadia, canceling its next Pixelbook laptop and slowing hiring.
What they're saying: “We’re sharpening our focus on a clear set of product and business priorities," Sundar Pichai, CEO of Alphabet and Google, said in a statement. “We’re sharpening our focus on a clear set of product and business priorities."
- "We are focused on both investing responsibly for the long term and being responsive to the economic environment.”
