Business
Alphabet’s profit dropped 14 percent in the second quarter.
Google’s search engine enterprise is demonstrating resilience within the face of a slowing financial system and rising inflation, however its different companies haven’t been capable of escape a downturn in internet marketing.
Google’s mother or father firm, Alphabet, reported on Tuesday a web revenue of $16 billion within the second quarter, down 14 % from a yr earlier, whereas income climbed 13 % to $69.7 billion. The earnings had been under analysts’ estimates of $17.5 billion in revenue on $69.9 billion in income, in accordance with knowledge compiled by FactSet.
Lifted by retail and journey advertisers, the corporate’s search advert gross sales grew greater than 13 % to $40.7 billion, above analysts’ expectation of $40.2 billion. Advert gross sales for Google’s search engine — a vital gateway to the web — proved much less weak to financial situations than YouTube, which Google owns, and the corporate’s community division that locations digital adverts on varied websites throughout the web.
Tuesday’s earnings report “supplies extra proof that Google search advert income in all fairness recession-resistant,” Mark Mahaney, an analyst at Evercore ISI, stated in an interview.
Even with the monetary cushion of its in style merchandise, Google should take care of a raft of uncertainties which have roiled world markets in current months. These embrace slowing financial development and rising inflation in america and different main economies, which affect promoting budgets and shopper habits — each essential to Google’s enterprise. The corporate should additionally navigate results from a persistent pandemic and Russia’s invasion of Ukraine.
Alphabet, identified for its fast personnel expansions, has exercised warning in response to the macroeconomic atmosphere, saying it should sluggish hiring for the remainder of the yr and put a precedence on the roles it wants.
Shares of Alphabet rose 5 % in after-hours buying and selling.
Ruth Porat, Alphabet’s chief monetary officer, had warned that Alphabet’s development could seem extra modest due to unfavorable comparisons within the second quarter. Within the earlier spring, monetary outcomes had been indicative of a restoration for the reason that early days of the pandemic, when advertisers had been spooked. The latest quarter additionally mirrored the corporate’s choice to halt enterprise in Russia due to the battle. In 2021, Russia contributed 1 % to Google’s whole income.
Advert income for YouTube, the most well-liked vacation spot for on-line movies, grew 5 % within the three months that ended on June 30, to $7.3 billion. This was a decline from 14 % development within the first quarter. Moreover weaker spending from advertisers, Ms. Porat stated, YouTube’s outcomes appeared extra meager due to troublesome comparisons from a yr earlier.
The pullback in spending on YouTube and Google’s promoting community by “some advertisers within the second quarter displays uncertainty about plenty of elements,” Ms. Porat stated on a name with monetary analysts.
The corporate’s revenue was dented by rising prices and losses on some investments. Ms. Porat stated Google had spent extra on knowledge facilities and hiring within the second quarter. The corporate additionally recorded a $790 million loss from debt investments, and a $251 million loss from inventory holdings.
Alphabet stated it now had 174,014 staff, a rise of greater than 10,000 from the determine it reported in April. Like lots of its friends, the corporate has since stated it should sluggish hiring.
Google’s cloud computing unit posted a 36 % enhance in income, although it misplaced $858 million within the second quarter. A yr earlier, the division posted a lack of $591 million. The unit nonetheless lags behind rival companies from Amazon and Microsoft.
Business
Mike Tyson vs. Jake Paul sets U.S. record for biggest gate for bout outside of Las Vegas
The Jake Paul-Mike Tyson bout that brought massive viewership numbers to Netflix last week also resulted in a record-setting gate.
Paul’s unanimous-decision victory over Tyson at AT&T Stadium in Arlington, Texas, on Friday has netted a gate of $18,117,072, a number that Paul’s Most Valuable Promotions says shatters the U.S. record for a boxing or MMA event held outside of Las Vegas.
More than 72,300 fans were in attendance, MVP said, with an average ticket price of $304.
Netflix and MVP reported Tuesday that the fight was the most-streamed sporting event ever, peaking at 65 million concurrent streams with an estimated average minute audience of 108 million live viewers worldwide.
The co-main event, in which Katie Taylor won a unanimous decision over Amanda Serrano to remain the undisputed world junior welterweight women’s champion, averaged 74 million live viewers globally, according to Netflix and MVP.
“From setting the highest gate outside of Las Vegas in U.S. history for a combat sports event to becoming the most streamed sporting event in U.S. history, this event is a testament to the global impact of Jake Paul, Mike Tyson, Katie Taylor, Amanda Serrano, and the incredible athletes on this card,” MVP co-founder Nakisa Bidarian said in a statement. “We’re proud to have partnered with Netflix to deliver an event that brought fans together worldwide and broke many records.”
Overall, the Tyson-Paul gate is the ninth-highest for a U.S. boxing match. The record was set in 2015, when Floyd Mayweather vs. Manny Pacquiao raked in more than $72 million at the MGM Grand in Las Vegas.
The event was Netflix’s first foray into streaming a live sporting event, and many viewers complained on social media about losing the feed and buffering. Netflix is slated to stream two NFL games on Christmas Day — the Kansas City Chiefs at the Pittsburgh Steelers and the Baltimore Ravens at the Houston Texans, with the latter game featuring a live halftime performance by Beyoncé.
“While it wasn’t a perfect experience for all of our members, we are 100% committed to doing even better for our next LIVE events, NFL’s two Christmas Day games,” Netflix chief marketing officer Marian Lee wrote of the Tyson-Paul fight on LinkedIn.
Business
Dishwasher getting old? With Trump vowing tariffs, it might make sense to shop for new appliances now
Dear Liz: President-elect Donald Trump’s proposed tariffs have me wondering if now is the time to purchase new kitchen appliances, something I have long delayed doing. If he follows through on his plans, I don’t know how long it would be before the new tariffs take effect.
Answer: Tariffs of up to 100% on imported products could dramatically increase the cost of many consumer goods, including appliances and cars. But how, when or even whether these tariffs will be imposed is still unclear.
Given the political uncertainties, it probably doesn’t make sense to proactively replace appliances or cars that are still in good working order. If you’re planning to update anyway, however, doing so sooner rather than later may save you some money.
Does this church pastor need to confess to the IRS?
Dear Liz: As a recent member of our church board, I just discovered our church hasn’t been paying Social Security or Medicare taxes for our pastor. I checked with our pastor and he hasn’t been making any payments either. This has been going on for six years. How do we recover?
Answer: Clergy are generally exempt from having Social Security and Medicare taxes withheld from their wages, notes Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. However, clergy typically must pay self-employment taxes, which include Social Security and Medicare, unless an exemption has been approved by the IRS.
Normally, employers and employees each pay 7.65% of the employee’s wages to cover Social Security and Medicare taxes. Self-employed people typically must pay both the employer and employee shares, or a total of 15.3%.
If your pastor has been filing taxes as a self-employed person, then he probably has been paying the appropriate Social Security and Medicare taxes. If he hasn’t, however, he may owe a substantial tax bill and should consider hiring a tax pro to help him amend his returns.
Which Social Security benefit? It depends
Dear Liz: I am 61 and retired. My husband recently died at age 61 and he was still working at the time of his death. He’s always made more money than I did. I’ve been told that I can start getting Social Security after I turn 62 and when I turn 67 I can apply for survivor benefits. Is this correct?
Answer: You can start survivor benefits as early as age 60 and retirement benefits as early as age 62. Most people should delay their applications for Social Security benefits, because an early start typically means a smaller lifetime payout. You’re one of the exceptions since you’re allowed to switch between survivor benefits and your own.
Because the survivor benefit is much larger than your own, you’ll want to maximize your payout by not taking it early. That means waiting to start until your full retirement age. You can start your own benefit at 62 and switch to survivor benefits at 67.
An early start means being subject to the earnings test until full retirement age. If you’re not working, though, that’s a moot point.
Social Security is complicated and the right claiming strategy depends on the details of an individual’s situation. Consider using one of the paid Social Security claiming strategy sites, such as Maximize My Social Security or Social Security Solutions, to find the best approach.
Inheriting stocks after a parent’s death resets cost basis
Dear Liz: I am a beneficiary of my father’s brokerage account. Upon his death, the brokerage company closed his account and transferred all of the equities to me in a new account. How will I know the cost basis for capital gains purposes when I sell the stocks?
Answer: You will use the value of the stocks on the day of your father’s death as the new tax basis. This is known as a “step up” in basis, since typically the fair market value at death is higher than the original basis, or what your dad paid for the stocks. Any appreciation that occurred during his lifetime won’t be taxed, but you would be subject to capital gains tax on any appreciation that occurs after that date.
Liz Weston, Certified Financial Planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon Blvd., No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.
Business
Fresh Brothers pizza chain expanding beyond Southern California after sale to Craveworthy Brands
Fresh Brothers, the Southern California pizza chain, will expand into a national brand after being acquired this week by a Chicago-based company.
Founded in 2008, the popular pizza chain currently has 25 locations from Los Angeles to San Diego including shops in Manhattan Beach, Brentwood and Hollywood. The operation was appealing to Craveworthy Brands, which operates 15 restaurant brands with 225 locations nationally, said Chief Executive Gregg Majewski.
Majewski declined to disclose how much Craveworthy Brands paid to acquire Fresh Brothers. Under Craveworthy’s franchise model, new Fresh Brothers pizza locations will be independently owned, he said.
There are plans to open a Fresh Brothers in the Chicago area and begin franchising in other states by March, Majewski said. And while he eventually hopes to make some inroads in Florida and other states, Majewski said he doesn’t have plans to make an aggressive push into the Northeast.
“We’re going to work our way east from Los Angeles and west from Chicago, and we’ll meet somewhere in the middle when we’re done,” Majewski said.
He also plans to expand the Fresh Brothers footprint in California.
The restaurants’ affordable prices and use of higher-quality ingredients set Fresh Brothers apart in the crowded field of pizza chains, Majewski said.
“That’s a niche we want to be in,” he said. “We think Fresh Brothers is absolutely prime to be a higher level franchise concept in the pizza world.”
The expansion of Fresh Brothers is somewhat of an outlier in the fast-casual dining industry, where many chains have been struggling amid inflation and high labor costs. Average consumers are pulling back on discretionary spending, experts say, and may be frequenting their favorite restaurants less.
Mod Pizza, a fast-casual chain with more than 40 locations in California, was acquired by a Los Angeles-based restaurant group in July after teetering on the edge of bankruptcy. Popular burger joint Shake Shack closed nine locations in September, including five in the Los Angeles area.
But Majewski is optimistic about Fresh Brothers’ future and said the brand is a perfect fit for his restaurant platform.
“Backed by a deep understanding of market dynamics and a commitment to operational excellence, Craveworthy is uniquely positioned to guide Fresh Brothers’ journey from its Southern California foundation to nationwide expansion,” the company said in a statement.
-
Business1 week ago
Column: Molly White's message for journalists going freelance — be ready for the pitfalls
-
Science5 days ago
Trump nominates Dr. Oz to head Medicare and Medicaid and help take on 'illness industrial complex'
-
Politics7 days ago
Trump taps FCC member Brendan Carr to lead agency: 'Warrior for Free Speech'
-
Technology6 days ago
Inside Elon Musk’s messy breakup with OpenAI
-
Lifestyle1 week ago
Some in the U.S. farm industry are alarmed by Trump's embrace of RFK Jr. and tariffs
-
World7 days ago
Protesters in Slovakia rally against Robert Fico’s populist government
-
News7 days ago
They disagree about a lot, but these singers figure out how to stay in harmony
-
News7 days ago
Gaetz-gate: Navigating the President-elect's most baffling Cabinet pick