Alphabet had more than $70 billion in market cap wiped out, and it’s blaming YouTube | WHAT REALLY HAPPENED


Alphabet had more than $70 billion in market cap wiped out, and it’s blaming YouTube

Google has a YouTube problem, according to CFO Ruth Porat.

On Monday, after reporting that ad revenue grew 15% versus the 24% it saw a year ago, Google’s parent company Alphabet saw its stock punished. It fell nearly 8% Tuesday morning.

According to Porat, YouTube was one of the culprits.

“While YouTube clicks continue to grow at a substantial pace in the first quarter, the rate of YouTube click growth rate decelerated versus a strong Q1 last year, reflecting changes that we made in early 2018, which we believe are overall additive to the user and advertiser experience,” Porat said on the company’s earnings call Monday.

Porat didn’t expand on precisely what changes in YouTube led to the poor ad revenue growth, and Google isn’t saying anything beyond her statements from Monday.

But if you wind the clock back a year, it’s easy to see what happened.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA