Google search advertisements helped parent Alphabet Inc. the hope that the biggest seller of online advertising in the world may do better than smaller competitors in the event of a worldwide recession.
On a conference call with financial analysts, a trio of Alphabet executives sounded cautious, using the word “uncertain” or “uncertainty” at least 13 times to describe the state of the economy. Since disclosures started in 2018, YouTube ad sales increased at their sluggishest rate.
Investors, however, were more interested in other factors, particularly the fact that Google search, the company’s biggest revenue generator, actually outperformed forecasts in the second quarter. Following the results, Alphabet’s shares increased 5.5 percent in after-hours trade.In contrast, Snap Inc.’s shares dropped more than 25% last week after the firm missed sales targets and issued a warning about a slowing ad market.
Executives at Alphabet’s asserted that Google was not immune to the pullback, which was caused by customers experiencing product shortages, decreased demand, and a number of other causes. This year, some ad purchasers have been compelled to reduce their marketing budgets due to growing wages, as well as the cost of petrol and other goods.