YouTube advertising sales of US$6.9 billion missed Wall Street's target of US$7.5 billion, according to FactSet.Īlphabet said first-quarter sales were US$68.01 billion, 23 per cent higher than last year but below the average estimate of US$68.1 billion among financial analysts tracked by Refinitiv, its first miss since the fourth quarter of 2019 before the pandemic. "Alphabet has been seen as one of the most insulated companies in the advertising space relative to peers, but sometimes you can still own the best house in the worst neighbourhood," said David Wagner, portfolio manager at Aptus Capital Advisors. Some advertisers are rethinking ad spending amid elevated interest rates, higher transport costs and shortages of products from couches to cars to infant formula, analysts said.Īlphabet shares were down 4.9 per cent in after-hours trading. Google overall derived 1 per cent of its sales in 2021 from Russia, Porat said. The world's largest provider of search and video ads has been a big winner of the shift to online commerce over the past two years, but the war and the latest economic phase of the pandemic are delivering new challenges. She also reported moderating growth in sales to direct-response advertisers on YouTube, and she added that cuts to app store fees to address competition concerns had wiped out gains in subscription revenue. The war in Ukraine that began during the quarter had an "outsized impact" on YouTube revenue because the company stopped ad sales in Russia and brand advertisers, particularly in Europe, pulled back on spending, Alphabet Chief Financial Officer Ruth Porat told analysts. Google parent Alphabet on Tuesday (Apr 26) reported first-quarter revenue below expectations as YouTube sharply missed Wall Street targets and ad sales overall were pressured by the war in Ukraine and supply-chain and inflation concerns.
0 kommentar(er)
