Alphabet misses on earnings and revenue for second quarter

Alphabet reported weaker-than-expected earnings and revenue for the second quarter. The stock rose about 2% in extended trading.

Here’s how the company did:

• Earnings per share (EPS): $1.21 vs $1.28 expected, according to Refinitiv
• Revenue: $69.69 billion vs $69.9 billion expected, according to Refinitiv

• YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected, according to StreetAccount
• Google Cloud revenue: $6.28 billion vs. $6.41 billion expected, according to StreetAccount.
• Traffic acquisition costs (TAC): $12.21 billion vs $12.41 billion expected, according to StreetAccount

Revenue growth slowed to 13% in the quarter from 62% a year earlier, when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise.

Advertising revenue increased just 12% to $56.3 billion, as marketers reeled in their spending to manage inflationary pressures.

Revenue in Alphabet’s Other Bets segment, which includes self-driving car unit Waymo as well as some health-tech projects and the company’s venture arms, rose by $1 million from a year earlier to $193 million. It lost $1.69 billion during the quarter.

Google Cloud, which fell short of revenue expectations, lost $858 million during the quarter.

The report comes days after Snap announced disastrous quarterly results and said it plans to slow hiring because “forward-looking visibility remains incredibly challenging.” In contrast to Snap, Alphabet shares rose slightly in extended trading despite the miss, as investors may have been expecting more troubling signs.

Alphabet shares have lost about a quarter of their value this year.

This is breaking news. Please check back for updates.

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