Alphabet Earnings Below Expectations

Shares of Alphabet were higher in late trading Tuesday after the Google parent reported earnings that were only slightly worse than expectations and Alphabet shares have lost about a quarter of their value this year.

Advertising revenue increased just 12% to $56.3 billion, as marketers reeled in their spending to manage inflationary pressures.

The company reported Q2 revenue of $69.69 billion, up 13% year over year. Net income was $16 billion, or $1.21 per share. Revenue growth slowed to 13% in the quarter from 62% a year earlier, when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise.

The report comes days after Snap announced disastrous quarterly results and said it plans to slow hiring because “forward-looking visibility remains incredibly challenging.” In contrast to Snap, Alphabet shares rose slightly in extended trading despite the miss, as investors may have been expecting more troubling signs.

Google Cloud fell short of revenue expectations and lost $858 million during the quarter. Other Bets, which includes self-driving car unit Waymo and life sciences unit Verily, made $193 million in revenue but lost $1.69 billion during the quarter.