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Alphabet Beats Analysts' Estimates on Surge of Retail...


Second-quarter sales for Alphabet Inc., Google’s parent, surged past Wall Street estimates, due to a swell of ads from retail marketers eager to encourage consumer spending through e-commerce on YouTube and by physically returning to stores.
Revenue, excluding payments to distribution partners, was about $51 billion in the period ended June 30, the Mountain View, California-based company said Tuesday in a statement. Analysts projected $46.1 billion, according to data compiled by Bloomberg. Profit was $27.26 a share, topping the average estimate of $19.35.
After a digital-ads slowdown a year ago during the Covid-19 pandemic, Google’s advertising business has rebounded. The increase in digital advertising sales in the quarter echoed similar results reported last week by social media companies Twitter Inc. and Snap Inc., with all shrugging off any concerns about how the highly contagious Covid-19 delta variant could affect marketing budgets on their platforms. Google, t ....

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Alphabet, Facebook drop as Citi warns of ad growth slowdown


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A key source of revenue for the sector.
By Ryan Vlastelica, Bloomberg
11 May 2021 
08:04 
Image: David Gray/Bloomberg
Alphabet and Facebook tumbled on Monday, leading a broad move lower in internet stocks after Citigroup warned about the outlook for digital advertising, a key source of revenue for the sector.
The firm downgraded both names to neutral from buy, writing that “caution is in order” for companies that derive revenue from digital advertising. While ad budgets are expected to continue shifting online, growth is likely to decelerate, and “historically, that usually isn’t bullish for multiples,” analyst Jason Bazinet wrote. ....

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