Alphabet (Google) sees its profit shrink to $16.4 billion in the first quarter, below expectations

This is 8% less than a year ago, when the online advertising giant had an exceptional quarter.

Alphabet, the parent company of Google, on Tuesday posted net profit of $16.44 billion for the first quarter, 8% less than a year ago, when the online advertising giant had made a exceptional quarter. At 68 billion dollars, its turnover jumped 23% over one year, but is also slightly below market expectations. The action of the Californian group lost about 4% during electronic trading after the closing of the New York Stock Exchange.

«In 2021, Google exceeded our forecasts for both search and video, the two pillars of digital advertising.“recalled Paul Verna, an analyst of eMarketer. In the first quarter, in particular, the leader in online search had tripled its net profit, boosted by the end of the pandemic and a favorable comparison compared to 2020, when the emergence of Covid-19 had reduced the expenses of certain advertisers. , particularly in the travel sector. The comparison plays this time against the Mountain View group.

164,000 employees worldwide

Alphabet has also recruited with a vengeance: it now has nearly 164,000 employees worldwide, compared to 140,000 a year ago. “We continue to invest prudently (…) in research and development and talent to support the creation of long-term value for all our shareholders“said Ruth Porat, the chief financial officer, quoted in the press release.

The company shouldcapitalize this year on the recovery of retail and an improvement on the supply chain side, two engines of the online search market, of which Google has a 59% share worldwide“, estimated Paul Verna. Ads on YouTube generated $6.9 billion in the first quarter (vs. $6 billion last year). The cloud service (remote computing) saw its revenues jump 44% to $5.8 billion.

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick