Google Ad Revenue Drops for Second Straight Quarter
Google reported a second straight drop in advertising revenue, extending a rare decline as the company navigates economic concerns and tries to capitalize on recent advances in artificial intelligence. Alphabet Inc., Google’s parent company (+1.47% after-hours), posted $54.5 billion in ad revenue for the first quarter, a decrease of less than 1% from the same period last year but a smaller decline than Wall Street anticipated. Both Google and Microsoft Corp. , which also reported earnings Tuesday, showed slowing growth but also areas of resilience that defied somber market expectations. Microsoft said revenue for the three months through March rose 7% from a year earlier, better than expected but marking the second-straight quarter below the company’s yearslong trend of double-digit percentage growth. Shares in both companies advanced after hours as the results surpassed analysts’ estimates and Alphabet disclosed plans to buy back as much as $70 billion of its stock.