Google Earnings Miss Expectations Amid Tech Industry Weakness

From CNET: Google parent Alphabet posted weaker-than-expected second-quarter earnings Tuesday as the search giant experienced a choppy economy that has already weighed on advertising revenue at Snap and Twitter.

In the quarter ended June 30, Alphabet reported revenue of $69.7 billion, missing the $70 billion forecast by analysts surveyed by Yahoo Finance. The company reported $1.21 in earnings per share, missing the $1.31 forecast.

The weak results come as advertising, the company's revenue driver, faces headwinds from a slowing economy. Google's advertising business didn't seem to suffer as badly as smaller internet companies but still faces a difficult environment. The tech giant's advertising revenue grew 12% year over year to $56.3 billion, a much slower rate than the 69% growth recorded a year earlier when advertisers rushed to meet consumers online during the height of the pandemic.

CFO Ruth Porat said 2021's strong numbers made for difficult comparisons this year.

"The very strong revenue performance last year continues to create tough comps," she said on a call with analysts. Porat added that year-on-year growth rates were likely to slow for the rest of the year.

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