Posts in Google Parents the alphabet (The Google) jumped on Wednesday after the internet giant reported better than feared June quarter results. Revenue growth in Google’s core digital advertising business saw a number of hits, though profits and revenue were lost.
Analysts say Google’s search-related advertising revenue on the Internet appears resilient. Revenue from search-related advertising was up 14% year over year, beating estimates.
“Research remains resilient given the large number of advertisers and the nature of ad performance,” Oppenheimer analyst Jason Helfstein said in a report.
Alphabet reported second-quarter earnings after the market closed on Tuesday. Google said second-quarter profit fell 11 percent to $1.21 a share. The company reports earnings according to generally accepted accounting principles, also known as GAAP.
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Total revenue also rose 16% to $69.7 billion. Google said currency exchange rates cut revenue by 4.3%, or roughly $2.7 billion.
Analysts expected Google to earn $1.27 per share on revenue of $69.62 billion. A year ago, Google reported earnings of $1.36 per share on revenue of $61.9 billion.
Meanwhile, ad revenue rose 11% to $56.29 billion, topping estimates of $55.97 billion.
Google stock jumped 5.3% to 110.53 in morning trading on stock market today.
“Faced with a wall of anxiety, Google posted surprisingly strong second-quarter earnings per share, with returns broadly in line with street estimates,” Mark Mahaney, analyst at Evercore ISI, said in a report. “Operating income missed the street by 3% while ad revenue, primarily search, came in slightly above expectations, and both YouTube and Cloud lost somewhat.”
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However, YouTube revenue rose only 5% to $7.3 billion. Analysts estimated YouTube ad revenue at $7.52 billion, up 7%. YouTube sales growth slowed from 14% in the first quarter.
The growth of ads for social media company TikTok via short videos has boomed. Analysts say TikTok is a headwind for YouTube’s growth.
Google said cloud computing revenue rose 36% to $6.28 billion, missing estimates of $6.41 billion. The operating loss for the cloud computing unit increased to $858 million from $591 million in the same period last year.
Alphabet repurchased $12.8 billion of its stock in the second quarter. In the first quarter, the company repurchased $13.3 billion of Google stock.
Going to the Google earnings report, the large technology stock It had fallen 25% in 2022 amid volatility in the Nasdaq. Selling Google stock after July 22 Explode, Explode (Explode, Explode) reported disappointing earnings from poor advertising.
“While Snap’s second-quarter print and third-quarter forecasts last week raised investor concerns, Alphabet’s second-quarter results highlight that marketers may be migrating to scale platforms,” Deutsche Bank analyst Benjamin Black said in a report.
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