Google owner has lower-than-expected results in the quarter and shares plummet

Google owner has lower-than-expected results in the quarter and shares plummet

Google parent Alphabet had a lower-than-expected result on Wall Street, in the first quarterly balance sheet below expectations since the beginning of the pandemic, pressured by the reduction of investment from advertisers in the face of greater fears of a global economic slowdown.

The company had revenue of US$ 68.01 billion (R$ 337.73 billion) in the first quarter, up 23% from the same period last year, but below the average revenue expected by industry analysts, of US$ 68. .1 billion (R$ 338.18 billion), according to data from Refinitiv.

Earnings for the quarter amounted to US$ 16.43 billion (R$ 81.59 billion) or US$ 24.62 per share. Analysts, on average, had expected earnings of $25.76 per share.

Alphabet shares fell 6.5% in extended trading after the results were published.

The numbers show that Google is struggling in the last economic phase of the pandemic, which is bringing higher interest rates, higher costs and shortages of a number of products.

Google is expected to have the biggest share of the global online advertising market in 2022, with a 22% share, estimated at $602 billion. If confirmed, it will be the company’s 12th consecutive year of leadership in the industry, according to Insider Intelligence.

Alphabet shares are down more than 17% this year. But in the last two years the shares have appreciated by almost 90%.

Alphabet has repurchased more than $81 billion in shares over the past two years. This Tuesday, the company’s board of directors authorized another US$ 70 billion (R$ 347.6 billion) in buybacks.

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