Alphabet Inc Class A (NASDAQ:GOOGL) stock fell 3.75% (As on Apr 27, 11:21:22 AM UTC-4, Source: Google Finance) after the company reported weaker-than-expected earnings and revenue for the first quarter. YouTube advertising revenue was of $6.87 billion vs. $7.51 billion expected, according to StreetAccount. YouTube ad revenue for the quarter fell short of analyst expectations. The video site was a particular beneficiary of the pandemic, when users were primarily at home on their devices. The miss also comes as TikTok captures a growing share of the social media video market. Google Cloud revenue was of $5.82 billion vs. $5.76 billion expected, according to StreetAccount. Traffic acquisition costs (TAC) was of $11.99 billion vs. $11.69 billion expected, according to StreetAccount. The company reported $54.66 billion in advertising revenue for the quarter, up from $44.68 billion the year prior. Google’s cloud business was a standout in the quarter, growing 44% and beating estimates as more big enterprises shift their workloads away from their own data centers. However, the cloud division is still losing money, reporting an operating loss of $931 million, compared to $974 million a year earlier. During the quarter, Google halted much of its Russian operations due to the invasion of Ukraine. Revenue growth in the European region, which also includes the Middle East and Africa, slowed to 19% in the first quarter from 33% a year earlier.

Moreover, Alphabet’s Other Bets, which includes its life sciences companies and self-driving car unit Waymo, nearly doubled revenue from the year prior to $440 million from $198 million. The unit’s loss slightly increased to $1.15 billion. Google’s other revenue segment, which includes hardware, Play Store, and non-advertising YouTube revenue, notched $6.81 billion, slightly higher than the prior year.

GOOGL in the first quarter of FY 22 has reported the adjusted earnings per share of $24.62, missing the analysts’ estimates for the adjusted earnings per share of $25.91, according to Refinitiv. The company had reported the adjusted revenue growth of 23 percent to $68.01 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $68.11 billion.

Additionally, on April 20, 2022, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, including the relative trading prices and volumes of the Class A and Class C shares.