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Alphabet Earnings: Google Parent Profits Drop 8%


Google’s parent company Alphabetreported an 8 percent drop in quarterly profit on Tuesday. The company’s core digital advertising business remained strong, but the value of its investments fell from a year ago, dragging Alphabet’s overall profitability down.

The company posted a net profit of $16.44 billion for the first quarter, compared to a profit of $17.93 billion in the same period of the previous year. Revenue rose 23 percent to $68.01 billion. The results fell short of analysts’ expectations for net income of $17.33 billion on revenue of $68.05 billion, according to estimates compiled by FactSet.

Alphabet’s shares fell 4 percent in aftermarket trading.

snow of the alphabet It’s down from a year ago when the company saw a massive rebound in digital ad demand and earned $4.8 billion in stocks. For the first quarter, Google reported a $1.07 billion loss from the value of its investments.

Alphabet’s advertising business continued to grow, particularly as the return on economic activity on travel helped drive demand for search ads. Throughout the pandemic, Alphabet has also benefited from increased internet activity; this usually means more opportunities for the company to sell more ads because Google search is often a ramp to the web and YouTube is the main destination for online video.

In response to Amazon’s growing advertising business, Google has also made changes to the way it allows retailers to list available products for online shoppers. Its goal is to get more people to start their shopping search on Google instead of going directly to Amazon.

In a recent survey, Morgan Stanley found that the percentage of people who started shopping searches on Google and YouTube has risen steadily from 50 percent to 60 percent in 2020.



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