On Tuesday, the company reported a decline in quarterly profit. The company's core business of digital advertising remained strong, but the value of its investments declined from a year earlier.
The company posted a net profit of $16.44 billion for the first quarter, compared with a profit of $17.93 billion in the same period a year earlier. The revenue increased by 23 percent. The results were below expectations, with a net profit of $17.33 billion and revenue of $68.05 billion.
The shares of the company fell in aftermarket trading.
When the company experienced a major rebound in demand for digital advertising and posted a $4.8 billion gain in its stock holdings, its profit fell from a year ago. In the first quarter, the value of its investments was a $1.07 billion loss.
The return of economic activity, especially in travel, helped boost demand for ads on search. Increased internet activity has meant more opportunities for the company to sell more advertising because it means more opportunities for the company to sell advertising on the internet.
Changes have been made to how retailers can list available products for online shoppers in the face of Amazon's growing advertising business. The goal is to get more people to start their shopping searches on the internet.
According to a recent survey by Morgan Stanley, the percentage of people who start shopping on YouTube has increased from 50 percent to 60 percent.
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