Google search ads beat targets despite global uncertainty
Google search ads lifted parent Alphabet Inc close to Wall Street sales expectations on Tuesday, sending shares up on relief that the world’s biggest seller of online advertising may withstand a global recession better than smaller rivals.
A trio of Alphabet executives sounded caution on a call with investment analysts, using “uncertain” or “uncertainty” at least 13 times to describe the economy. YouTube ad sales grew at their slowest pace since disclosures began in 2018.
But investors focused elsewhere, notably on the fact that second-quarter sales from the company’s biggest moneymaker – Google search – actually topped expectations. Shares of Alphabet jumped 5.5% in after-hours trading following the results.
“Despite the underwhelming quarter, expectations were so low that investors blew a sigh of relief,” said Jesse Cohen, senior analyst at Investing.com.
By contrast, shares of Snap Inc SNAP.N fell more than 25% last week after the company missed sales expectations and warned of an ad market slowdown.