Google parent Alphabet posted weaker-than-expected earnings on Tuesday. The search giant faces choppy economics weighing on ad revenue on Snap and Twitter.
In the quarter ended June 30, Alphabet reported revenue of $69.7 billion; It missed the $70 billion forecast by analysts at Yahoo Finance. The company reported earnings of $1.21 per share, missing estimates of $1.31.
The weak results come as the company’s revenue driver announcement faces headwinds from the economic slowdown. Google’s advertising business doesn’t seem to be as badly affected as other Internet companies, but it still faces a tough time. The tech giant’s ad revenue grew nearly 12 percent year over year to $56.3 billion.
Google Cloud revenue increased nearly 36% year-over-year to $6.3 billion. But the loss is not profitable as the dividend is still up a little more than 45% to $858 million.
The company’s workforce grew to 174,000 from 144,000 a year ago. Google CEO Sundar Pichai has said the company will slow down hiring.
The company has also battled against a rising dollar, which eats up earnings from overseas markets. Alphabet said the stronger dollar reduced year-over-year revenue growth by 3.7 percent.
This is a developing story.
