U.S. markets closed
  • S&P 500

    4,280.15
    +72.88 (+1.73%)
     
  • Dow 30

    33,761.05
    +424.38 (+1.27%)
     
  • Nasdaq

    13,047.19
    +267.27 (+2.09%)
     
  • Russell 2000

    2,016.62
    +41.36 (+2.09%)
     
  • Crude Oil

    91.88
    -2.46 (-2.61%)
     
  • Gold

    1,818.90
    +11.70 (+0.65%)
     
  • Silver

    20.83
    +0.49 (+2.39%)
     
  • EUR/USD

    1.0257
    -0.0068 (-0.66%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • GBP/USD

    1.2139
    -0.0064 (-0.52%)
     
  • USD/JPY

    133.4800
    +0.4810 (+0.36%)
     
  • BTC-USD

    24,649.58
    +694.67 (+2.90%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.65 (+2.62%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Alphabet earnings miss estimates, ad revenue beats, stock pops

·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Google parent company Alphabet (GOOG, GOOGL) reported earnings that missed Wall Street estimates after the closing bell on Tuesday.

The technology giant said adjusted earnings per share hit $1.21 during the second quarter, compared to $1.32 expected by analysts, according to Bloomberg data.

Meanwhile, revenue ex-TAC – or traffic acquisition costs – came in at $57.47 billion, compared to $58.14 billion expected by Wall Street.

Ad revenue totaled $56.29 billion during the period, topping the $56.14 billion analysts had expected. Google Services revenue, however, was light of estimates at $62.84 billion against expectations for $63.34 billion.

Shares of the company jumped 4% in after-hours trading. Through Tuesday's close, the stock has fallen roughly 27% year-to-date.

Alphabet's modest beat on ad revenue offered some relief to investors Tuesday following a dismal report from Snap (SNAP) last week that raised concerns about the digital advertising market.

The company posted an otherwise lackluster quarter. Overall revenue came in at $69.69 billion, up only 13% year-over-year compared to growth of 62% during the same period last year. Alphabet said foreign currency movements affected year-over-year revenue growth rates by 3.7%.

Google announced last week that it was scaling back on hiring this year and would entirely freeze onboarding new workers for the next two weeks as individual teams "prioritize their roles and hiring plans for the rest of the year.” The announcement came as other Big Tech peers said they would pause hiring in response to a more challenging economic environment.

Alphabet reported headcount totaled 174,014 as of June 30, 2022, compared to 163,906 at the end of the first quarter — up from 144,056 in Q2 of last year.

Google's results come on the heels of a 20-for-1 stock split executed July 15, 2022 in the form of a one-time special stock dividend on each share of the company's Class A, Class B, and Class C stock.

NEW YORK, NEW YORK - JULY 04: People walk near the Google offices on July 04, 2022 in New York City. Google announced on Friday it will eliminate location history entries if it identifies an abortion center. (Photo by John Smith/VIEWpress via Getty Images)
NEW YORK, NEW YORK - JULY 04: People walk near the Google offices on July 04, 2022 in New York City. Google announced on Friday it will eliminate location history entries if it identifies an abortion center. (Photo by John Smith/VIEWpress via Getty Images)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube