Google is being squeezed by a softening ad market that has cut more than $8 billion from sales expectations

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Alphabet's online advertising took a major hit during the onset of coronavirus, and things could get really gnarly when Google’s parent company reports results Thursday. $GOOGL $GOOG

This article is part of a series tracking the effects of the COVID-19 pandemic on major businesses, and will be updated. It was originally published on April 8.

“As the COVID-19 crisis ravages more parts of the U.S. in the most nefarious and unpredictable of ways, we believe businesses will be less inclined to spend on advertising,” White said in a July 24 note that maintained a buy rating and price target of $1,420. Business in the age of COVID-19: Read profiles of how other large companies will be affected by the coronavirus

How the numbers are changing Revenue: Average analyst expectations for the second quarter were $45.86 billion at the end of 2019, but have declined to $37.3 billion as of July 27. Estimates for Google websites, which account for most of Alphabet’s revenue, have declined from $32.09 billion to $24.98 billion in that time period, according to FactSet. For the full year, analysts expect revenue of $169.7 billion.

 

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Good!

Well there was this little thing called COVID19. Businesses were closed so they slowed or stopped spending. Some businesses amped up spending and drove people online but when almost every business hurts due to COVID-19 ad revenue will follow.

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