YouTube helps Alphabet lose money

Alphabet stock slid after first-quarter earnings for Google’s parent company came in below analyst expectations, with YouTube experiencing a sharp slowdown in advertising sales following a rapid expansion during the pandemic. The company’s core business remains strong, with overall advertising revenue growing about 22% to $54.66 billion. But ad revenue from YouTube grew by only 14% — below the 49% growth in the same period last year — a result of increased competition from TikTok and users spending less time on their devices than earlier in the pandemic.

Alphabet’s net profit for the quarter dropped 8% from a year ago to $16.44 billion. The company’s board has authorized $70 billion in share buybacks; Alphabet has repurchased about $81 billion in shares over the past two years.