Google parent company Alphabet (GOOGL) reported weaker-than-expected earnings and
revenue for the second quarter.
Alphabet reported earnings per share (EPS) of $1.21 U.S. versus $1.28 U.S. that analysts had
forecast, according to Refinitiv data. The company’s revenue totaled $69.69 billion U.S. versus
$69.90 billion U.S. that was anticipated.
The revenue growth slowed to 13% in the quarter from 62% a year earlier when Alphabet was
benefiting from the post-pandemic reopening of the global economy.
Online advertising revenue at Google increased just 12% to $56.3 billion U.S. in the quarter, as
marketers pulled back their spending to manage ongoing inflationary pressures.
The most notable decline was in the company’s YouTube division, where sales rose just 5%
after increasing 84% in the same period a year earlier.
Alphabet's “Other Bets” segment, which includes self-driving car unit Waymo as well as
healthcare projects, lost $1.69 billion U.S. during the quarter. Google Cloud lost $858 million
U.S. during the April through June period.
Alphabet said last month that it plans to slow hiring and investments through 2023, and CEO
Sundar Pichai told employees in a memo that “we’re not immune to economic headwinds.”
Alphabet didn't provide any forward guidance following its latest results, but analysts expect
growth for this year of 14% to $293.9 billion U.S., according to Refinitiv.
Alphabet stock is down 28% this year at $105.02 U.S. per share. The stock split on a 20-for-1
basis earlier in July.
