Google boss Sundar Pichai
Alphabet, the holding company whose main business is Google, will report second quarter 2021 results after the bell on Tuesday.
Analysts and investors expect a sharp increase in sales compared to the pandemic-stricken quarter of last year, when the company posted its first annualized sales decline.
According to analyst consensus, Wall Street expects:
- Earnings per share (EPS): $ 19.34 per share based on Refinitiv estimates.
- Revenue: $ 56.16 billion, according to Refinitiv estimates.
- YouTube advertising revenue: StreetAccount estimates $ 6.37 billion.
- Google Cloud Revenue: StreetAccount estimates $ 4.40 billion.
- Traffic Acquisition Costs (TAC): StreetAccount estimates $ 9.74 billion.
YouTube ads are expected to be a strong point after growing nearly 50% last quarter, which would keep it on track to match Netflix’s annualized revenue rate.
During the quarter, YouTube launched its competitor TikTok product, Shorts, as well as a $ 100 million fund to get popular people to use it. YouTube became the winner of the pandemic in terms of social media sites, according to a Pew report that said video sharing platform usage increased from 73% of US adults in 2019 to 81% in 2021.
During the quarter, Google also announced new ecommerce efforts, including a closer partnership with Shopify that will enable the company’s 1 million+ merchants to make their products more discoverable on Google Search and elsewhere.
Regulatory threats and antitrust concerns against Google also hit new highs in the quarter.
The Biden government announced that it would appoint the well-known Google enemy Jonathan Kanter to head its antitrust department. Biden also issued an executive order specifically ordering action against big tech and practices around data collection and data protection.
In early July, French regulators fined Google $ 593 million for uncooperative behavior with news publishers. In July, US government law enforcement agencies filed their fourth antitrust lawsuit against Google last year. This time around, a group of 37 prosecutors alleged the company had abused its power over app developers through its Play Store on Android.
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