Shares of Alphabet Inc (NASDAQ: GOOGL) are up 3.0% in extended trading after the tech behemoth said its Q2 ad revenue was up on a year-over-year basis.
Alphabet Q2 results: a brief recap
Net income printed at $16 billion versus $18.5 billion last year
Per-share earnings of $1.21 were down from $1.36 in Q2 of 2021
Revenue (ex-TAC) jumped about 13% YoY to $57.5 billion
Consensus was $1.27 of EPS on $57.6 billion in ex-TAC revenue
Ad sales and cloud revenue went up 12% and 37%, respectively
What else was interesting
Search brought in $40.7 billion, up 14% from the same quarter last year while YouTube ad sales saw an annualised growth of 5.0%, as per the earnings press release.
The American multinational saw its operating profit margin slip from 31% to 28% this quarter. Still, Virtus Investment Partners’ Joe Terranova said on CNBC’s “Closing Bell: Overtime”:
[Alphabet] has very strong capital allocation strategy. It’s buying back significant amounts of shares. That’s critical in the environment that we’re in now where growth is slowing.
Jefferies’ Jared Weisfeld reacts
It was the second consecutive quarter for Alphabet Inc to report a year-over-year hit to earnings. The last time it happened was in 2015 and even that was on a smaller scale. Reacting to the earnings report on CNBC’s “Fast Money”, Jefferies’ Jared Weisfeld said:
Alphabet print I thought was the star of the night. Expectations were lowered after Snapchat. But this is a business that’s levered to advertising growth and we’re seeing pretty broad-based strength in the current quarter.
Google stock is down more than 25% from its year-to-date high.
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