Google Earnings: There’s Good News and Bad News

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.Google earnings for the first quarter of 2020 took a licking, thanks to the coronavirus, but it still keeps ticking.

Google earnings for the first quarter of 2020 took a licking, thanks to the coronavirus, but it still keeps ticking.

Expecting a downturn due to COVID-19, analysts lowered their earnings estimates ahead of the tech giant’s report. Alphabet still reported an earnings miss, but it wound up edging out revenue expectations. Overall advertising and services revenue from properties such as search, Gmail, Google Play and YouTube grew — as much as 11.6 percent to $28.54 billion — but still came in below the just-lowered expectations of $29.07 billion.

On the up side, the company’s gross revenue landed at $41.16 billion for an increase of 13 percent. While that fell short of its 17 percent growth from the year-ago quarter, it was enough to beat expectations of $40.98 billion. That’s certainly the case for Google, whose cloud computing revenue soared to $2.78 billion. While less than the $2.81 billion anticipated, it still amounts to a surge in growth of 34 percent.

 

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