Alphabet, the parent company of Google, missed on Wall Street’s revenue and earnings estimates in the second quarter but saw its shares jump 4% in after-hours trading regardless. This is likely a result of positive ad revenue in a challenging environment for digital advertisement.
The investors probably liked the fact that Alphabet’s ad revenue came at $56.29 billion, beating the expected $56.14 billion. These numbers especially looked good when compared to some previously reported disastrous results, including those from Snap, causing the Alphabet stock to jump up. The company’s shares traded as high as $113.80 on Wednesday, marking a bounce back from the low point of $105.02 per share earlier this week.
Sharing its Q2 numbers, Alphabet reported total revenue of $69.69 billion versus the $69.9 billion expected. Its adjusted earnings per share (EPS) reached $1.21, while Wall Street experts expected $1.28. Finally, traffic acquisition costs (TAC) came at $12.21 billion vs. an estimated $12.41 billion.
Among other interesting bits of info is YouTube’s poor advertisement performance. The popular video-sharing platform had just a 5% increase in ad sales and came at $7.34 billion in ad revenue versus the $7.52 billion expected. In the same period last year, YouTube had an 84% jump in ad sales.