Negative outcomes have exposed many hopes that “Google,” the largest digital advertising platform in the world in terms of market share, will remain strong in light of the sluggish economy and have heightened concerns on Wall Street that inflation will continue to hurt advertising expenditure.
The smaller rival “Snap” reported its slowest revenue growth rate ever last week, sparking worries about technology industry inflation and temporarily wiping out $40 billion of its market worth.
Shares of “Alphabet” fell 7.2% in after-closing transactions.
Other businesses in this industry are concerned about “Alphabet’s” poor performance, particularly the “Meta Platforms,” which rely on advertisements.
The parent company of Facebook, which will release its results on Wednesday, saw a 4.5% decline in share price on Tuesday.
Ruth Borat, “Alphabet’s” financial director, claimed that the “extremely good performance” of the previous quarter is what caused the overall ad revenues to slow down. She also claimed that some advertisers’ dropping ad expenditure was the reason for the decline in YouTube ad sales.
“Not fortified” Google’s advertising revenues amounted to $ 54.
48 billion in the third quarter, down from $ 53. 13 billion in the same period last year, but still below experts’ projections.
The corporation reported that overall revenue increased from 65.12 billion dollars a year earlier to 69.09 billion dollars in the quarter that ended on September 30.
The average revenue was predicted by analysts to be $70.58 billion.
The advertising sales on YouTube also decreased to $ 7. 07 billion, from 7. 2 billion dollars in the same quarter of the previous year.
From 18. 94 billion dollars, or $ 1. 40 per share, a year before, the net “Alphabet” income decreased to 13. 91 billion dollars, or $ 1. 06 per share.
Analyst expectations for net income of $1.25 per share were not met.
However, “Google Claude” revenue increased from $ 5 billion to $ 6. 9 billion in the third quarter of the previous year.
The enormous technology corporation announced in July that it would reduce employment frequency for the remainder of the year, highlighting the fact that it is “not immune from the contrary economic winds.”
Ad revenues in “Google’s” parent business were “weak”
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