Google Earnings Miss Expectations as Tech Industry Shows Weakness

Google parent Alphabet posted weaker-than-expected second-quarter earnings Tuesday as the search giant experienced a choppy economy that has already weighed on advertising revenue at Snap and Twitter.

In the quarter ended June 30, Alphabet reported revenue of $69.7 billion. missing the $70 billion forecast by analysts surveyed by Yahoo Finance. The company reported $1.21 in earnings per share, missing the $1.31 forecast.

The weak results come as advertising, the company’s revenue driver, faces headwinds from a slowing economy. Google’s advertising business did not seem to suffer as badly as smaller internet companies but still faces a difficult environment. The tech giant’s advertising revenue grew almost 12% year over year to $56.3 billion.

Google Cloud revenue increased about 36% year over year to $6.3 billion. But the division is still unprofitable with losses widening a little bit more than 45% to $858 million.

The company also battled a surging dollar, which eats into the value of revenue from overseas markets. Alphabet said the strong dollar trimmed 3.7% from year-over-year revenue growth.

The company’s staff grew to 174,000 employees, up from 144,000 a year prior. Google CEO Sundar Pichai has said that the company is going to slow hiring.

This is a developing story.

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