Google ad revenue falls for second straight quarter

Google reported a second straight quarterly decline in ad revenue, continuing a rare decline. The company is grappling with economic uncertainty and trying to capitalize on recent advances in artificial intelligence (AI).

Google parent Alphabet Inc. (GOOGL) reported advertising revenue of $54.5 billion in the fiscal first quarter, down less than 1% from a year earlier. This is Google’s third decline in ad sales since it became a public company in 2004, and its second consecutive quarterly decline following a 3.6% drop in the fourth quarter.

Microsoft Corp. ( MSFT ) also reported earnings on Tuesday; both Google and Microsoft posted slower growth but also showed resilience in some areas and were less pessimistic than the market had expected. Microsoft said revenue rose 7% year over year in the three months ended March, beating expectations but marking the second straight quarter below the company’s multi-year trend of double-digit percentage growth.

Shares of both companies rose after hours as earnings beat analysts’ expectations and Alphabet disclosed plans to buy back up to $70 billion in stock.

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