Alphabet, the parent company of Google, also announced their FY Q2 2022 earnings ending June 30, 2022 today, and like arch-rival Microsoft the company also disappointed investors.

Their adjusting earnings per share was $1.21 via analyst expectations of $1.32 while revenue was $69.69 billion vs $69.9 billion expected.

Google however showed strength in its core business, with ad revenue of $56.29 billion vs analyst expectations of $56.14 billion, while traffic acquisition costs came in at $57.47 billion, compared to $58.14 billion expected by Wall Street, which likely explains the enthusiastic response of the stock market, with Google’s shares rising 4% in after-hours trading.

Sundar Pichai, CEO of Alphabet and Google, said: “In the second quarter our performance was driven by Search and Cloud. The investments we’ve made over the years in AI and computing are helping to make our services particularly valuable for consumers, and highly effective for businesses of all sizes. As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long-term.”

Ruth Porat, CFO of Alphabet and Google, said: “Our consistent investments to support long-term growth are reflected in our solid performance in the second quarter, with revenues of $69.7 billion in the quarter, up 13% versus last year or 16% on a constant currency basis. We are focused on responsible capital allocation in support of our growth opportunities.”

Read the full report at Google here.