Apr 28, 2020 - Economy & Business

Alphabet shares rise on Q1 revenue beat, despite advertising slowdown

Photo by Jaap Arriens/NurPhoto via Getty Images

Stock for Google's parent company, Alphabet, was up nearly 4% in after-hours trading Tuesday after the company reported that it beat Wall Street expectations for total revenue.

Yes, but: Despite beating expectations on revenue, the company still reported a slowed advertising growth rate compared to last quarter, due to the decline of the ad market caused by the coronavirus. Google makes the vast majority of its total revenue from ads.

Why it matters: Investors were eager to see how well Google would fare this quarter, given that it's by far the largest advertising-based company in the world.

  • Google's results signal some relief to investors in the ad-based tech sector, although analysts still predict a very rocky road ahead for advertising-based companies.

By the numbers, via CNBC:

  • Earnings: $9.87 per share, adjusted versus $10.33 per share expected
  • Revenue: $41.16 billion verses $40.29 billion expected by Refinitiv
  • Traffic acquisition costs: $7.45 billion versus $7.51 billion per FactSet estimate
  • Cloud revenue: $2.78 billion
  • YouTube advertising revenue: $4.04 billion

Be smart: First quarter revenues don't reflect a full quarter of economic impact from the virus crisis. Many of these companies didn't begin to experience major ad pullback until March, when stay-in-place orders began.

  • Google in particular has been hit heavily by the reduction in ad spending by travel companies like Expedia and Booking Holdings (owner of booking.com and kayak.com).

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Updated 7 mins ago - Politics & Policy

Trump says RNC is looking outside of North Carolina for convention site

North Carolina Gov. Roy Cooper in 2018. Photo: Sara D. Davis/Getty Images

President Trump tweeted on Tuesday night that because of ongoing coronavirus restrictions in North Carolina, the Republican Party will be "forced to seek another state" to host its convention in August.

The big picture: The late-night tweet came after North Carolina Gov. Roy Cooper (D) told convention organizers earlier Tuesday that Republicans should plan for a "scaled-down convention with fewer people, social distancing and face coverings" given the impact of the pandemic.

Updates: George Floyd protests continue past curfews

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued Tuesday across the U.S. for the eighth consecutive day, prompting a federal response from the National Guard, Immigration and Customs Enforcement and Customs and Border Protection.

The latest: Even with early curfews in New York City and Washington, D.C., protesters are still out en masse. Some protesters in D.C. said they were galvanized by President Trump's photo op in front of St. John's Church on Monday and threat to deploy U.S. troops in the rest of country if violence isn't quelled, NBC News reports.

Updated 1 hour ago - Politics & Policy

Trump backs off push to federalize forces against riots

Photo: Brendan Smialowski /AFP via Getty Images

A day after threatening to federalize forces to snuff out riots across the country, the president appears to be backing off the idea of invoking the Insurrection Act, sources familiar with his plans tell Axios.

What we're hearing: Aides say he hasn’t ruled out its use at some point, but that he's “pleased” with the way protests were handled last night (apart from in New York City, as he indicated on Twitter today) — and that for now he's satisfied with leaving the crackdown to states through local law enforcement and the National Guard.