Alphabet Stock Pops Despite Earnings Miss, Slowing Ad Sales Growth
Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) reported second-quarter 2022 results after the market close on Tuesday. Following the release, Class A (GOOGL) and Class C (GOOG) shares of the Google parent and technology giant popped 4.9% and 4.8%, respectively, in Tuesday's after-hours trading session.
Given investors' positive initial reaction, one might assume earnings beat the Wall Street consensus estimate. However, this wasn't the case. The bottom line fell short of the analyst expectation, while revenue came in roughly on target.
What's going on? Investors were relieved that the overall results weren't worse. Specifically, they were relieved that Alphabet's slowdown in ad sales wasn't as bad as many feared it might be. These concerns largely stemmed from Twitter and Snapchat parent Snap releasing Q2 results last week that were quite disappointing.
Source Fool.com
