Tough trading session ahead for Alphabet. On October 25, the parent company of Google did not satisfy the markets by announcing a turnover of 69.1 billion dollars for the third quarter, up 6%. As for the net result, it stood at 13.9 billion dollars, far from the 18.9 billion earned in the same period a year earlier.
In the wake of the publication of the quarterly results of the American group, the action of Alphabet fell by more than 6% in the exchanges carried out after the closing of Wall Street. From hovering around $150 at the end of 2021, Alphabet’s share price is now hovering around the $100 mark.
The Mountain View company is facing a slowdown in its growth, the first signs of which appeared in the second quarter. Between April and June 2022, she had seen her income increase by only 13% over one year, recording de facto its weakest growth since the second quarter of 2020. The situation has therefore worsened further over the past three months.
YouTube ad revenue down
Faced with the erosion of advertising spending on a global scale, Google has failed to meet analysts’ expectations. Its turnover from online advertising, which is at the heart of its business model, thus stood at 54.5 billion dollars in the third quarter, a slight increase of 2.5% over one year. Suffering from TikTok, YouTube even saw its advertising revenue drop by 2% to $7.1 billion.
On the other hand, the American giant can count on the good traction of Google Cloud, whose revenues increased by 38% in the third quarter, to 6.9 billion dollars. An increase which is however accompanied by 699 million dollars in net losses. This is one of the rare good news for Google at the end of these last three months, which have been complicated for many American tech players, like Snap.