Concerns were expressed about the dismal sales of Google parent company “Alphabetadvertisements “‘s today (Tuesday), as advertisers cut down on their expenditure due to the slowing economy.
Negative outcomes have revealed many expectations that Google, the largest digital advertising platform in the world in terms of market share, will remain strong in light of the weak economy and have heightened Wall Street’s concerns that inflation is continuing to hurt the spending on advertisements.
The smallest competition, Snap, reportedly experienced its slowest revenue growth rate ever last week due to concerns about inflation in the technology industry and temporarily lost $40 billion in market value.
Shares of Alphabet decreased 7.2% after the acquisition.
Alphabet’s disappointing results are worrying other businesses in this industry, particularly Meta Platforms, which rely on advertising, and the parent company of Facebook, whose earnings will be announced tomorrow, Wednesday, and whose shares are down 4.5% today, Tuesday.
According to Ruth Borat, director of Alphabet Financial, the “extremely good performance” of the previous quarter is what caused the overall ad revenues to slow down. She also stated that the reduction in YouTube ad sales is caused by some advertisers cutting down on their ad spending.
* “Not strengthened”
Google’s third-quarter advertising revenue was $ 54.48 billion, down from $ 53.13 billion the year prior, although it was still higher than analysts had anticipated.
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.
According to data from Rafinitiv, analysts predicted that the average revenue would total $70.58 billion.
The sales of advertising on YouTube also decreased to $ 7. 07 billion, from 7. 2 billion dollars in the same quarter of the previous year.
The net income of alphabet decreased to 13. 91 billion dollars, or $ 1. 06 per share from 18.
94 billion dollars, or $1.40 per share, while the net profits fell short of experts’ predictions of $1.25 per share.
However, Google Claude’s third-quarter revenues increased from $5 billion to $6.9 billion from the same period last 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.”
Google’s parents’ sales alerts users to the reduction of advertisers.
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