THE Alphabetits parent company Googlereported yesterday, Tuesday, the first quarterly revenue loss after the pandemic period, as the war in Ukraine hit YouTube ad salesupsetting investors.
The largest video platform on the internet has recorded big profits in the last two years, as the pandemic forced more stores, but also consumers to be more active on the internet. However, trying to surpass the sales made in the last two years and achieve higher sales targets is proving difficult this year. of warwhile the increase of inflationbut also the Product shortages force advertisers to abandon product promotion advertising campaignsaccording to analysts.
THE Ruth PoratAlphabet’s chief financial officer said it is too early to predict whether sales slowed from the war. He warned that the strengthening of the US dollar could hurt the sales process even more during the current quarter.
The price of shares Alphabet’s stock has risen about 90% in the last two years, while it has fallen by about 2.5%, after the announcement of the results late yesterday, Tuesday. The price of shares decreased by 3.6% during the stock trading.
THE David Wagner shareholder manager (Aptus Capital Advisors) expressed the growing concerns about the macroeconomic environment. “Alphabet is considered one of the most protected companies in the advertising market compared to other companies in the same industry, but sometimes it is possible to own the best house in the worst neighborhood,” he said.
Alphabet reported first-quarter sales of $ 68.01 billion (€ 63.88 billion) up 23% year-on-year, but lower than the $ 68.1 billion average ($ 63.1 billion). 97 billion) by financial analysts (Refinitiv). This is the first loss of financial valuation for Alphabet since the fourth quarter of 2019.
The sales ads YouTube grossed $ 6.9 billion (€ 6.48 billion) compared to analysts’ estimates of $ 7.5 billion (€ 7.04 billion) in sales, according to FactSet.
Porat said the war in Ukraine, which started during the quarter, had a “huge impact” on YouTube revenueas the company stopped advertising sales in Russiabut also branded product advertisers, mainly in Europe, withdrew in relation to their expenditure after the outbreak of war.
Overall, according to the Athenian-Macedonian News Agency, Google had a sales gap of 1% in Russia, compared to 2021, according to Porat.
Google’s revenue from other sources, such as applications, electronics sales and subscriptions, stood at $ 6.8 billion (€ 6.39 billion), compared with a forecast of $ 7.3 billion (€ 6.86 billion).
Quarterly earnings were recorded at $ 16.44 billion (€ 15.44 billion) or $ 24.62 (€ 23.13) per share, compared to estimates for earnings of $ 25.76 (€ 24.20) per share.
Alphabet also announced that its board of directors has authorized the allocation of $ 70 billion (€ 65.75 billion) of funds to repurchase shares. Shares worth $ 81 billion (€ 76.08 billion) have been repurchased over the past two years.
Source: News Beast
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