Google earnings

The earnings miss dragged Alphabet shares lower, with the stock down nearly 20% this month alone.

Alphabet’s stock has fallen roughly 17% so far in 2022, while the Nasdaq Composite index down 19% this year. Netflix co-CEO Reed Hastings said that in an effort to return to growth, the company would explore offering a lower-priced subscription tier with ads, though it will take several years to implement. Citing increased competition and “password sharing,” the company said that it expects to lose more subscribers in the current quarter.

Alphabet missed on top and bottom lines for the first quarter. YouTube showed particularly weak results. Other Bets, which includes self-driving car unit ...

The unit lost slightly more than the previous year with $1.15 billion. However, the cloud division is still losing money, reporting an operating loss of $931 million, compared to $974 million a year earlier. Porat says YouTube "modest growth" mostly in direct response ads. The video site was a particular beneficiary of the pandemic, when users were primarily at home on their devices. Google's revenue came in at $68.01 billion, growth of 23% from the same period last year. $7.51 billion expected, according to StreetAccount

Google parent Alphabet's (GOOGL) Q1 earnings and revenue missed analyst expectations. But Google Cloud revenue came in above estimates.

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Google's earnings for the first quarter of 2022 show lighter than expected revenues.

Still, TikTok is the heavyweight in the short-form video market, a status it is unlikely to cede anytime soon. The company is encouraging creators to make videos for the platform with a $100 million fund. The company controls more than 90% of the search market, using it to generate revenue by selling advertising against keywords and search results. The company also spent on sales and marketing. On a call with analysts, CFO Ruth Porat said the company had expanded aggressively over the quarter with investments in data centers and adding employees. The weaker than expected results come as Google tries to diversify its revenue, in part to address its reliance on search.

Google reported 23% year-over-year revenue growth in its Q1 2022 financial results, surpassing the $68 billion mark in total revenue.

- $52 billion in Class A and Class C shares repurchased in the last 12 months. Cloud, AI, YouTube, and Search were priorities this past year and in 2021, Google spent over $40 billion in R&D in the U.S. alone. - $69 billion in free cash flow for the last 12 months. The reduced growth rate in YouTube revenue can be attributed to the “lapping of the exceptional performance of direct response that they called out in the first quarter of 2021,” Porat reported. That’s up substantially from the $55.3 billion reported in Q1 2021 but a marked decline from the 34% growth rate reported at that time, when consumers’ informational needs were at their peak due to the pandemic. Google reported 23% year-over-year revenue growth in its Q1 2022 financial results, surpassing the $68 billion mark in total revenue.

The results were below analysts' expectations for a net profit of $17.33 billion on revenue of $68.05 billion.

In a recent survey, Morgan Stanley found that the percentage of people who start shopping searches on Google and YouTube had increased steadily to 60 percent, up from 50 percent in 2020. The company posted a net profit of $16.44 billion for the first quarter, compared with a profit of $17.93 billion in the same period a year earlier — the first time the company’s quarterly profit had fallen from the prior year since the second quarter of 2020. Search ads grew 24 percent but that was a deceleration from a 36 percent increase in the fourth quarter of 2021. In the face of Amazon’s growing advertising business, Google has also made changes to how it allows retailers to list available products for online shoppers. For the first quarter, Alphabet reported a $1.07 billion loss from the value of its investments. Still, Alphabet’s mixed quarter showed how much the company’s business boomed at the height of the pandemic last year.

Alphabet shares fell in after-hours trading following a slightly disappointing earnings report from the search giant.

Google’s parent company reported net income of $16.4 billion, or $24.62 per share. Alphabet shares dipped late Tuesday after the company missed first-quarter earnings expectations. Alphabet Earnings Disappoint. The Stock Is Dropping.

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%.

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.

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.