Alphabet’s profit fell 14% in the second quarter

Even with the financial cushion of its popular products, Google faces a series of uncertainties that have rattled global markets in recent months. These include slowing economic growth and rising inflation in the United States and other major economies, which are influencing advertising budgets and consumer behavior, both critical to Google’s business. . The company is also dealing with the effects of a lingering pandemic and Russia’s invasion of Ukraine.

Alphabet, known for its rapid staff expansions, has been cautious in response to the macro environment, saying it will slow hiring for the rest of the year and prioritize roles it needs.

Alphabet shares rose 5% in after-hours trading.

Ruth Porat, Alphabet’s chief financial officer, had warned that Alphabet’s growth might appear more modest due to unfavorable comparisons in the second quarter. The previous spring, financial results indicated a recovery from the early days of the pandemic, when advertisers were spooked. The last quarter also reflected the company’s decision to cease operations in Russia due to the war. In 2021, Russia contributed 1% to Google’s total revenue.

Ad revenue from YouTube, the most popular destination for online videos, rose 5% in the three months to June 30 to $7.3 billion. This is down from 14% growth in the first quarter. Along with lower advertiser spending, Porat said, YouTube’s results looked leaner due to tough comparisons from the previous year.

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