Google’s epidemic may eventually slow down.
Google’s parent company, Alphabet, reported an 8 percent drop in quarterly profits on Tuesday, driven by slower growth for advertising on YouTube and search, as well as a drop in the value of its investment.
The company posted a net profit of $ 16.44 billion in the first quarter, compared to a profit of $ 17.93 billion in the same period a year earlier – the first quarter since the second quarter of 2020, the company’s first-quarter profit fell. ટકા 68.01 billion, up 23 percent. According to estimates compiled by Factset, results for a net profit of $ 17.33 billion on revenue of $ 68.05 billion were lower than analysts expected.
Shares of Alphabet fell 4 percent in aftermarket trading.
Alphabet’s profit The company saw a sharp rise in demand for digital advertising and a વધારો 4.8 billion increase in its stock holdings compared to a year ago. In the first quarter, Alphabet reported a loss of $ 1.07 billion from the value of its investments. The company announced in the past that it owns shares of Ride-Healing Services Lift and building security firm ADT, both of which saw their share prices fall with the broader market.
Growth in Google’s two major advertising businesses has also slowed over the past quarter. Ads on YouTube are up 14 percent from a year ago. The war in Ukraine prompted some European advertisers to withdraw spending on YouTube, the company said.
Search ads grew 24 percent, but were down 36 percent in the fourth quarter of 2021. The strong dollar, which emphasizes international revenue, also pulled in the quarter.
Ruth Porat, Alphabet’s chief financial officer, said the company’s growth in the next quarter could look more modest than last year, with Alphabet making favorable comparisons after the recession in the early part of the epidemic in 2020.
She warned that the current quarter of Alphabet will face tougher compared to last year. It will reflect the company’s decision to close its business in Russia, which accounted for about 1 percent of its total revenue in 2012.
However, Alphabet’s mixed quarters show how much the company’s business grew at the height of the epidemic last year. Revenue grew 23 percent in the first quarter – as the company was bringing in about $ 750 million a day – and sales were down sharply from a 41 percent increase last year.
Throughout the epidemic, Alphabet has benefited from an increase in Internet activity, which in general gives the company more opportunities to sell ads as Google search is often on-ramp on the web and YouTube is the main place for video online.
In light of Amazon’s growing advertising business, Google has also made changes to how retailers are allowed to list products available to online shoppers. The goal is to get more people to start searching for their purchases on Google instead of going directly to Amazon.
In a recent survey, Morgan Stanley found that the percentage of people who start shopping search on Google and YouTube has steadily increased to 60 percent, from 50 percent in 2020. Google said retail and travel search are the biggest contributors to revenue growth. First trimester.
Google’s cloud computing unit has reported a 44% increase in revenue – although the business continues to run at a loss. The loss was $ 931 million in the first quarter, compared to $ 974 million a year ago.
Alphabet said he continued to rent aggressively. The company said it had 163,900 employees at the end of March, an increase of 7,500 from December.