Google’s parent company Alphabet reported missing its estimation on YouTube and European ads; it has blamed the Russian-Ukraine war.
YouTube ads performed woefully and earned a revenue of $6.87 billion, which, when compared with analysts average estimate of $7.4 billion, shows nearly $800 million worth of disappointment. For this, Google has partially blamed Apple’s ban on third-party ads.
Meanwhile, for its network system ads, the company explained that new European and US ad regulations negatively impacted its business.
Still, it is notable that Google’s ad services remain on the positive axis. For example, its search ads and cloud business beat expectations, making revenues of $39.6 billion and $5.82 billion, respectively.
Brian Wieser, global president for business intelligence at ad agency GroupM, explained that the earnings call caused disappointment due to investors’ expectations and estimates.
The company’s other businesses, known as Bets, have also been reported to be on the rise, with its car driving service Waymo making $440 million in revenue on losses of $1.16 billion; Waymo is still running at a loss for now.
On Tuesday, Alphabet shares dropped to $2,207.79 in extended trading after closing at $2,373 in New York. Take note that Alphabet made revenue of US$257.6 billion in 2021, and it has ties in almost all arms of tech, including AI, Biotechnology, Computer hardware, Corporate venture capital, Fiber to the x, Health care, and Robotics. According to the last count, in April 2022, it had 12 major subsidiaries.
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