Alphabet Crushes Q2 Expectations as Ad Revenue Surges 69 Percent
Alphabet reports massive second-quarter earnings that easily beat analyst estimates, driven by a huge jump in advertising and YouTube revenue. The tech giant also shows significant improvement in its Google Cloud business despite ongoing operating losses.
Alphabet reports impressive second-quarter earnings that easily surpass analyst expectations, driving its stock up more than three percent in after-hours trading. The company earns $27.26 per share on $61.88 billion in revenue, significantly beating estimates of $19.34 per share and $56.16 billion in revenue.
Google advertising revenue jumps 69 percent from last year to reach $50.44 billion, with retail acting as the largest contributor to this growth. YouTube also shows remarkable strength, generating over $7 billion in ad revenue and reaching 15 billion daily views on its TikTok competitor, YouTube Shorts.
Google Cloud grows its revenue to $4.63 billion and significantly narrows its operating losses compared to the previous year. However, Alphabet's chief financial officer warns that revenue tailwinds will likely be more muted in the third quarter as markets continue to reopen amid fluctuating Covid case rates.