YouTube Ad Revenue Jumps 9% in Third Quarter

Revenue increased 25% year-over-year to hit $128 billion, which was in line with what was expected by Yahoo Finance analysts YouTube ad revenue came in at $11.2 billion, a 9% year-over-year increase Alphabet shares fell 8.7% in after-hours trading Alphabet reported a 25% increase in revenue during its third quarter earnings report on Thursday. The results were posted after the markets closed. Revenue came in at $128 billion for the quarter, which was largely driven by a strong quarter for the Google Search & other division. Revenue from that division came in at $63 billion, a roughly 12% year-over-year increase. The year-over-year query growth rate for Google Search was the highest it has been in the last five years. YouTube once again had a strong quarter. Ad revenue from the division came in at $11.2 billion, a 9% increase compared to this time last year. Also, YouTube Music and Premium surpassed 150 million subscribers globally, a number that includes trials. Earnings per share came in at $2.12, a decline from a year ago when earnings per share came in at $2.87. Earnings excluding one-time items came in at $2.67 a share, which factors a 55 cent-per-share hit from the write-off of equity losses. The report comes as Wall Street is growing increasingly hesitant about the vast investment in AI from tech giants. In July, Alphabet increased its capital expenditures forecast for the year — jumping from around $190 billion to anywhere between $195 billion to $205 billion — to account for increased spending on AI. More to come …