The world’s largest seller of online advertising may do better than smaller competitors in the event of a global recession, according to Google search advertisements, which helped parent Alphabet Inc.
On a conference call with financial analysts, a trio of Alphabet executives sounded cautious, describing the economy at least 13 times with the word “uncertain” or “uncertainty.” Since disclosures started in 2018, YouTube ad sales growth has been at a standstill.
Investors, however, were more interested in other things, particularly the fact that Google search, the company’s main revenue generator, actually outperformed forecasts in the second quarter. After-hours trading in Alphabet shares increased 5.5 percent in response to the results.
Despite the disappointing quarter, Jesse Cohen, senior analyst at Investing.com, claimed that investors were relieved because expectations were so low.Comparatively, Snap Inc.’s shares dropped more than 25% last week after the business missed sales targets and signalled a downturn in the ad industry.
