Alphabet Inc posted a weak corporate report but search ad service Google pushed the company closer to Wall Street forecasts amid a possible global recession.
Looking at the details of the report, Alphabet's 2nd quarter (Q2) profit fell by $16 billion or $1.21 per share compared to the average estimate of $1.29 per share.
It is understood that Alphabet's profits are difficult to predict due to the different dependencies in the interests it holds in many startup companies.
It should be noted that Alphabet shares fell more than 27% so far this year ahead of quarterly results following disappointing reports from Snap Inc and Twitter Inc.
Meanwhile, Google's search service (Google Search) played a big role in contributing to the $69.69 billion revenue result with 81% of it coming from the advertising business.
Even so, the forecast set by analysts according to Refinitiv is at $69.88 billion.
Comment analyst Evelyn Mitchell from Insider Intelligence, Google managed to position itself well behind the decision.
Adding to the core of the report, travel and retail advertising drove a 14% increase in Google ad sales in Q2 at $40.69 billion beating projections of $40.15 billion.
In the meantime, the decline in Alphabet's performance can be attributed to several factors including the strengthening of the greenback.
According to the company, sales would have reached $72 billion if not for the strengthening of the dollar, as 55% of sales came from abroad.
In addition, the company's actions to boycott and exit the Russian market and the failure to sign a cooperation agreement with Netflix Inc also affected the overall performance.
With investors accustomed to gross profit margins as high as 60%, Google, like its peers, has slowed hiring.
However, Alphabet is seen taking steps to expand its public computing in addition to bringing Google Fiber internet services to new communities.
