Google earnings

Alphabet shares slumped lower Wednesday after the search and ad sales giant posted softer-than-expected first quarter revenues amid a global pullback in ad ...

That was where we had the largest impact from COVID. So that means in the second quarter of 2022, we're going to face a tough comp." YouTube ad sales, however, were well shy of forecasts at $6.9 billion as Google suspended activities in Russia and European clients tightened marketing budgets. "Revenue growth rates that we delivered in 2021 in Search and across our advertising businesses more generally did benefit from lapping the Covid-related weakness in 2020," CFO Ruth Porat told investors on a conference call late Tuesday. "So one key point is that we're not going to have that tailwind for the rest of this year. Group revenues also disappointed, even after rising 23% to $68.01 billion, as ad sales were only in-line with the Street at $54.66 billion. "I would say, in addition, the second quarter results are going to continue to reflect that we suspended the vast majority of our commercial activities in Russia," she added. Alphabet ( GOOGL) - Get Alphabet Inc. Class A Report shares slumped lower Wednesday after the search and ad sales giant posted softer-than-expected first quarter revenues amid a global pullback in ad sales linked in part to Russia's war on Ukraine and increasing competition from China-based TikTok.

Alphabet, the parent company of Google, explained how Russia's war on Ukraine has impacted revenues, both directly and indirectly during 2022 Q1 earnings ...

Is there anything you want to call out about Asia Pacific this quarter, why it could have been softer? And then I noted the impact of foreign exchange. The CFO of Alphabet noted that one percent of revenues were advertising related from Russia and that this revenue was directly impacted from Alphabet’s decision to pull out the majority of commercial activity from Russia. That is potentially a fairly significant amount of revenue, so it’s clear that the Russian war on Ukraine is having a direct impact on Alphabet. “In terms of revenues, the most direct impact is the fact that we suspended the vast majority of our commercial activities in Russia, as we announced in early March. In addition, from the outset of the war, there was a pullback in advertiser spend, particularly on YouTube in Europe.” Some of the negative impact on Google/Alphabet’s earnings is due to the fact that Alphabet has suspended most commercial activity in Russia.

Google parent company Alphabet fell short of revenue expectations – particularly for YouTube, which has seen stiff competition from TikTok.

Google Cloud beat expectations with around $5.82bn in revenue, up from $4.05bn the year before. “We’ll keep investing in great products and services, and creating opportunities for partners and local communities around the world.” However, that first quarter in 2021 had recorded growth of 34pc. YouTube hit back yesterday (26 April) with an expansion to Super Thanks, the feature that lets viewers tip creators for individual videos. YouTube’s advertising revenue rose to nearly $6.87bn, up 14pc year on year. Google’s parent company Alphabet reported weaker earnings than expected for its first quarter of the year, with a decline in net income and a slowdown in revenue growth.

Alphabet reported Q1 results that missed on the bottom line. Why do I think GOOG/GOOGL stock has become cheap and is worth considering?

Multiple factors, including the war in Ukraine, rising inflation and bumpiness adjusting to changes in Apple's tracking features, have affected marketer spend.

YouTube last year rolled out a $100 million Shorts fund to encourage more creators to use the feature. The executive also said the ongoing war in Ukraine carried an "outsized" impact on YouTube in relation to the company's overall ad business. Regardless of numerous macroeconomic disruptions — inflation was also called out — YouTube is contending with stiffer competition in mobile video than it has before. About 1% of Google revenues were derived from Russia in 2021, per Porat. The firm has suspended the majority of its operations in the country in response to the invasion. Google's core search and other revenue breakout was up 24% YoY to $39.61 billion in Q1. Retail has continued to buoy search as marketers try to wed their digital advertising and commerce initiatives closer together. - Multiple factors, including the war in Ukraine, rising inflation and bumpiness adjusting to changes in Apple's tracking features, have affected marketer spend.

Google's earnings shortfall is an indication of trouble across the online-advertising industry, and should scare investors in Facebook and other ...

“Obviously we will not have that tailwind for the rest of this year,” she said. “The war, that did have an outsized impact on YouTube ads relative to the rest of Google,” Porat said. Comments about its Google ad and search business are likely indicators that other internet companies could report even more disappointing results in the coming weeks, starting with Facebook on Wednesday. The numbers weren’t the only problem, though: Wall Street analysts seemed especially disappointed in comments by Alphabet Chief Financial Officer Ruth Porat about a potentially slower second quarter and slowing revenue growth at YouTube. In addition to YouTube, concerns about the general macroeconomic advertising environment and the outlook spooked some analysts. In the year-ago quarter, for example, YouTube revenue soared 48.7%.

Ahead of Meta's first-quarter earnings release on Wednesday, Meta shares were trading around 1.5% lower. That comes after Google parent company Alphabet ...

“This poses a big problem for Facebook, and it’s probably why you see them try to diversify their revenue streams in terms of the metaverse and all these other ventures.” And earlier this year, the Washington Post reported that Meta had hired a consulting firm to turn the U.S. public against TikTok. “YouTube [is] seeing strong engagement,” analysts said, speculating that this could help with TikTok concerns. In 2020, TikTok revealed in a court filing that its global monthly active users had risen by almost 800% in just over two years, CNBC reported. While TikTok woos social media’s younger users, Facebook is struggling to keep them. Instagram, the second-most downloaded app, was downloaded 545 million times in 2021, Hootsuite’s research says.

Warren Buffett regretted not buying Google. The selloff after Q1 earnings has brought the valuation close to what I call the Buffett value-line.