Google's search engine business is demonstrating resilience in the face of a slowing economy and rising inflation, but its other businesses have not been able to escape a downturn in online advertising
Google’s search engine business is demonstrating resilience in the face of a slowing economy and rising inflation, but its other businesses have not been able to escape a downturn in online advertising.
Google’s parent company, Alphabet, reported on Tuesday a net profit of $16 billion in the second quarter, down 14% from a year earlier, while revenue climbed 13% to $69.7 billion. The earnings were below analysts’ estimates of $17.5 billion in profit on $69.9 billion in revenue, according to data compiled by FactSet.
Lifted by retail and travel advertisers, the company’s search ad sales grew more than 13% to $40.7 billion, above analysts’ expectation of $40.2 billion. Ad sales for Google’s search engine — a crucial gateway to the internet — proved less vulnerable to economic conditions than YouTube, which Google owns, and the company’s network division that places digital ads on various sites across the internet.
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