Google earnings signal company weathering slowdown better than expected

Alphabet only narrowly missed estimates for its quarterly revenue on Tuesday, a sign the tech giant may weather an industry-wide slowdown better than expected.

Alphabet reported second-quarter revenue of $69.69bn, 13% higher than same period a year ago and nearly in line with the average expectation of $69.88bn among investment researchers tracked by Refinitiv.

In light of these changes, analysts had braced themselves for negative results, as rising inflation has influenced ad buyers to spend less on marketing. Alphabet, like others in the tech space, has struggled to maintain the huge growth it saw during the pandemic when much of life moved online.

Still, within the $602bn global online ad industry, Google is expected to maintain market share of 29%, or the biggest share for the 12th straight year, according to Insider Intelligence.

Reuters contributed to this report.