Google CEO Sundar Pichai
Alphabet, the holding company whose main business is Google, is set to report Q2 2021 earnings after the bell Tuesday.
Analysts and investors say they’re expecting a strong surge in revenue compared with last year’s pandemic-stricken quarter, when the company saw its first-ever annualized revenue decline.
Here’s what Wall Street expects according to analyst consensus:
- Earnings per share (EPS): $19.34 per share, according to Refinitiv estimates.
- Revenue: $56.16 billion, according to Refinitiv estimates.
- YouTube advertising revenue: $6.37 billion, according to StreetAccount estimates.
- Google Cloud revenue: $4.40 billion, according to StreetAccount estimates.
- Traffic acquisition costs (TAC): $9.74 billion, according to StreetAccount estimates.
During the quarter, YouTube launched its TikTok competitor 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, which said the video platform saw usage grow from 73% of U.S. adults in 2019 to 81% in 2021.
During the quarter, Google also announced new e-commerce efforts, including a deeper partnership with Shopify that will let the company’s more than 1 million merchants make their products more discoverable in Google Search and elsewhere.
Regulatory threats and antitrust concerns against Google also reached a new high during the quarter.
The Biden administration announced it would appoint known Google foe Jonathan Kanter to lead its antitrust division. Biden also issued an executive order specifically ordering a crackdown on Big Tech and practices around data gathering and privacy.
Earlier in July, French regulators fined Google $593 million over uncooperative behavior with news publishers. U.S. government enforcers in July filed its fourth antitrust lawsuit against Google in the last year. This time — a group of 37 state attorneys alleged the company abused its power over app developers through its Play Store on Android.
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