Alphabet Q2 results were the ‘star of the night’: Jefferies analyst

Shares of Alphabet Inc (NASDAQ: GOOGL) are up 3.0% in extended trading after the tech behemoth said its Q2 ad revenue was up on a year-over-year basis.

Alphabet Q2 results: a brief recap

• Net income printed at $16 billion versus $18.5 billion last year
• Per-share earnings of $1.21 were down from $1.36 in Q2 of 2021
• Revenue (ex-TAC) jumped about 13% YoY to $57.5 billion
• Consensus was $1.27 of EPS on $57.6 billion in ex-TAC revenue
• Ad sales and cloud revenue went up 12% and 37%, respectively

What else was interesting

Search brought in $40.7 billion, up 14% from the same quarter last year while YouTube ad sales saw an annualised growth of 5.0%, as per the earnings press release.

The American multinational saw its operating profit margin slip from 31% to 28% this quarter. Still, Virtus Investment Partners’ Joe Terranova said on CNBC’s “Closing Bell: Overtime”:

Jefferies’ Jared Weisfeld reacts

It was the second consecutive quarter for Alphabet Inc to report a year-over-year hit to earnings. The last time it happened was in 2015 and even that was on a smaller scale. Reacting to the earnings report on CNBC’s “Fast Money”, Jefferies’ Jared Weisfeld said:

Google stock is down more than 25% from its year-to-date high.