Wall Street Breakfast April 27: Alphabet Addressing YouTube Slowdown, Investing Aggressively

Wall Street Breakfast

Seeking Alpha

Business, Investing, Business News, News

3.8 • 950 Ratings

🗓️ 27 April 2022

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Alphabet earnings call clearly focused of attention on a dramatic slowdown in YouTube revenue growth against a very hot 2021 comparison. Microsoft Chief Executive Satya Nadella spent most of his company's fiscal third-quarter earnings talking about the success of the software giant's cloud services business. Elon Musk purchase of Twitter has $1B termination fee for both sides.

Transcript

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0:00.0	Welcome to Seeking Alpha's Wall Street breakfast, your daily source of market news and analysis.
0:06.8	Subscribe to this podcast on Apple Podcast, Spotify or Stitcher.
0:11.0	Good morning. Today is Wednesday, April 27th, and I'm your host Julie Morgan.
0:16.0	Our top stories, Alphabet, Microsoft, and Twitter.
0:19.8	Alphabet reported its Q1 earnings.
0:22.3	Did they meet expectations and what happened in one key area?
0:26.3	Where did Microsoft see the most growth?
0:28.9	And how much is the termination fee for both parties in the Elon Musk Twitter deal? We'll start off with
0:34.6	Alphabet. Alphabet fell short of expectations for earnings per share. Net income
0:39.4	dropped year over year. Revenues were mostly on point in rows across the board with search
0:45.0	Google Network and cloud rising by 20% or more but most of the attention was focused
0:51.5	on YouTube's slowdown in revenue growth when you compare it to a smoking hot 2021.
0:57.0	The growth was 14.4 percent, and that's what analysts were asking about the most during the call.
1:03.2	Chief Financial Officer Ruth Poorets' answer is one we talk about daily here on Wall Street
1:08.5	breakfast podcast, The Russia-Ukraine War.
1:12.0	She said the deceleration came alongside some industry-wide
1:15.3	advertising hiccups with the start of the Russia-Ukraine War. She said the
1:19.9	most direct impact of the war is the fact that the company suspended the vast
1:24.4	majority of its commercial activities in Russia, primarily advertising, which by
1:29.7	the way accounted for about 1% of Google revenues in 2021.
1:34.0	She went on to say that from the outset of the war,
1:37.0	there was a pullback in advertising spend.
	...

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