According to StockApps.com, in Q2 2022, Youtube’s ad income increased by 4.8% year over year to $7.34 billion. This is far less than Wall Street experts’ prediction that YouTube’s ad revenue would see a 7% YoY increase to US$7.49 billion. In comparison, YouTube’s ad revenue increased by 84% to $7 billion in Q2 2021. But, this figure was somewhat inflated due to Covid-19’s early effects on sales in the first half of 2020.
Commenting on the status, StockApps’ Edith Reads said. « The year over year growth is at its lowest since 2020. However, it was closer to predictions than Q1 when YouTube missed estimates by over US$600 million. »
Alphabet Slightly Missed Estimates
Overall, Alphabet slightly missed earnings estimates. The internet behemoth reported $69.69 billion in sales, up 13%, and $16.0 billion in net income. Wall Street consensus projections were for $69.99 billion in revenue and $1.30/share in earnings.
Besides macroeconomic obstacles like growing inflation, analysts predict that YouTube ad dollars are shrinking due to YouTube Shorts, the platform’s surging TikTok-like short-video feature. Google boasted last month that YouTube Shorts has 1.5 billion monthly logged-in visitors. Yet, it only began testing ads for short clips recently.
Revenue Excludes Subscriptions From YouTube TV and YouTube Premium
Alphabet’s YouTube ad sales estimates do not include YouTube TV and YouTube Premium subscriptions. YouTube TV boasts 5 million members and free trial users, making it the leading internet pay-TV provider in the U.S.The full story and statistics can be found here: YouTube Ad Revenue Growth of 4.8% In Q2 Is the Slowest in More Than 2 Years
Amazon’s market cap tops Alibaba and Walmart combined despite a 35% Q2 slump
Amazon (NASDAQ: AMZN) has maintained the crown as the undisputed ecommerce leader, a factor that has influenced more investors to invest in the company. Despite rivals benefitting from factors like the pandemic, Amazon holds a significantly high market cap despite the ongoing volatility of the stock market.
According to data acquired and calculated by Finbold, Amazon’s market capitalisation for Q2 2022 ranked first among the top ten retail companies at $1.08 trillion. Walmart (NYSE: WMT), Alibaba (NYSE: BABA), and Home Depot (NYSE: HD) ranked second, third and fourth at $333.33 billion, $304.1 billion,and 281.9 billion, respectively. Interestingly, Amazon still ranks higher than the $919.3 billion cumulative market capitalisation of the three companies.
Elsewhere, Amazon has maintained a high capitalisation despite the metric dropping by 34.9% between Q1 and Q2 2022. Among the top ten retailers by market cap, only Alibaba, JD.com, and Inditex recorded positive gains between the year’s first two quarters at 2.7%, 8.7%, and 9.2%, respectively.
Impact of Amazon business model
The report explained some critical drivers behind Amazon’s ability to sustain a staggering market capitalisation dwarfing competitors. According to the research report:
« Amazon’s unique position among investors can be tied to the company’s innovative and customer-centered approach to managing its business, guided by the overarching mission of becoming the planet’s most customer-centric company. The factor has translated to significant profits, a crucial metric used by investors. »
Notably, Amazon’s business model has driven the company to high profitability while retaining a high cash flow. In this line, the research report notes that:
« Beyond profits and sales, a significant share of investors are interested in cash-flow generation, a factor Amazon appears to have mastered. Like leading tech stocks, Amazon has an impressive cash flow, with the firm opting to reinvest the money to expand into new areas. »
At the moment, Amazon appears poised to sustain its competitive advantage over other retail rivals. However, the company is still facing a threat as the closest competitors like Walmart continue to innovate, and the macroeconomic headwinds might impact the market cap.