The Fort Worth Press - Google parent Alphabet's profits fall short at $14 bn

USD -
AED 3.672698
AFN 71.945485
ALL 94.960531
AMD 393.846385
ANG 1.801124
AOA 837.000352
ARS 868.489782
AUD 1.551771
AWG 1.8
AZN 1.698722
BAM 1.83576
BBD 2.017834
BDT 109.678146
BGN 1.832914
BHD 0.376857
BIF 2863.860782
BMD 1
BND 1.361392
BOB 6.92047
BRL 5.230089
BSD 0.999343
BTN 83.424286
BWP 13.880363
BYN 3.270509
BYR 19600
BZD 2.014455
CAD 1.372375
CDF 2804.999968
CHF 0.91155
CLF 0.03476
CLP 959.139721
CNY 7.242904
CNH 7.252865
COP 3914.37
CRC 501.88194
CUC 1
CUP 26.5
CVE 103.497311
CZK 23.679801
DJF 177.961329
DKK 6.996897
DOP 58.973709
DZD 134.593008
EGP 48.258197
ERN 15
ETB 56.783619
EUR 0.937815
FJD 2.27695
FKP 0.802762
GBP 0.807533
GEL 2.665044
GGP 0.802762
GHS 13.442026
GIP 0.802762
GMD 67.898929
GNF 8591.300757
GTQ 7.77274
GYD 209.087752
HKD 7.832649
HNL 24.672655
HRK 7.08016
HTG 132.571793
HUF 369.80985
IDR 16213.15
ILS 3.757303
IMP 0.802762
INR 83.42295
IQD 1309.179651
IRR 42062.50203
ISK 141.149674
JEP 0.802762
JMD 155.755169
JOD 0.708696
JPY 154.690503
KES 131.419549
KGS 89.016501
KHR 4061.442577
KMF 462.57499
KPW 900.00035
KRW 1381.804969
KWD 0.30837
KYD 0.832833
KZT 445.917026
LAK 21309.367374
LBP 89493.241975
LKR 301.830298
LRD 193.195038
LSL 19.150432
LTL 2.95274
LVL 0.60489
LYD 4.876103
MAD 10.12418
MDL 17.898442
MGA 4405.89831
MKD 57.772271
MMK 2098.648395
MNT 3450.000346
MOP 8.062869
MRU 39.706258
MUR 46.52986
MVR 15.449709
MWK 1732.323375
MXN 17.047026
MYR 4.784018
MZN 63.510149
NAD 19.14986
NGN 1075.749595
NIO 36.784997
NOK 11.004255
NPR 133.47882
NZD 1.688975
OMR 0.38498
PAB 0.999352
PEN 3.728775
PGK 3.79767
PHP 57.4865
PKR 278.12632
PLN 4.03895
PYG 7393.467242
QAR 3.640497
RON 4.666699
RSD 109.953726
RUB 93.893009
RWF 1288.636086
SAR 3.751398
SBD 8.440171
SCR 14.389367
SDG 585.999628
SEK 10.907199
SGD 1.361398
SHP 1.26345
SLE 22.847303
SLL 20969.503664
SOS 571.470907
SRD 34.527027
STD 20697.981008
SVC 8.744134
SYP 2512.53037
SZL 19.212683
THB 36.982015
TJS 10.918161
TMT 3.51
TND 3.150996
TOP 2.391649
TRY 32.611099
TTD 6.786184
TWD 32.618006
TZS 2579.354025
UAH 39.789467
UGX 3807.995194
UYU 38.370925
UZS 12689.249946
VEF 3622552.534434
VES 36.296673
VND 25450
VUV 118.722038
WST 2.803608
XAF 615.696599
XAG 0.035382
XAU 0.000422
XCD 2.70255
XDR 0.758877
XOF 615.69082
XPF 112.449768
YER 250.350252
ZAR 19.068403
ZMK 9001.197777
ZMW 25.658907
ZWL 321.999592
  • CMSC

    0.0100

    23.9

    +0.04%

  • SCS

    0.1100

    11.94

    +0.92%

  • NGG

    -0.0600

    65.38

    -0.09%

  • AZN

    0.1900

    68.55

    +0.28%

  • BCC

    -1.0500

    133.6

    -0.79%

  • SLAC

    0.0050

    10.305

    +0.05%

  • RIO

    0.2900

    66.97

    +0.43%

  • GSK

    0.4800

    39.75

    +1.21%

  • RBGPF

    0.1400

    51.75

    +0.27%

  • BTI

    0.2300

    29.05

    +0.79%

  • RYCEF

    -0.0750

    4.885

    -1.54%

  • BCE

    0.3800

    32.59

    +1.17%

  • BP

    0.6000

    38.52

    +1.56%

  • CMSD

    0.0900

    24.3

    +0.37%

  • JRI

    0.0400

    10.95

    +0.37%

  • VOD

    0.0600

    8.34

    +0.72%

  • RELX

    -0.3600

    41.07

    -0.88%

Google parent Alphabet's profits fall short at $14 bn
Google parent Alphabet's profits fall short at $14 bn / Photo: © GETTY IMAGES NORTH AMERICA/AFP

Google parent Alphabet's profits fall short at $14 bn

Google parent Alphabet on Tuesday reported quarterly earnings that fell short of market expectations as belts tightened in the digital ad market that drives its revenue.

Text size:

Alphabet said it made a profit of $14 billion in the third quarter on ad revenue that grew just 6 percent to $69 billion when compared with the same period of last year.

Aside from one period at the start of the Covid pandemic, that would mark the weakest revenue growth at Alphabet for any quarter since 2014.

"When Google stumbles, it's a bad omen for digital advertising at large," said Insider Intelligence analyst Evelyn Mitchell.

"This disappointing quarter for Google signifies hard times ahead if market conditions continue to deteriorate."

Alphabet shares slipped 6.3 percent to $97.90 in after-market trades that followed the release of the earnings report.

Google's foundation in advertising on its heavily used search engine does give it an advantage, however, over other ad-reliant tech firms such as Meta, Snap and Twitter, the analyst added.

"We’re sharpening our focus on a clear set of product and business priorities," Alphabet chief executive Sundar Pichai said in an earnings release.

"We are focused on both investing responsibly for the long term and being responsive to the economic environment.”

Alphabet chief financial officer Ruth Porat said the financial results in the quarter showed "healthy fundamental growth in Search and momentum in Cloud" computing revenue, but suffered from foreign exchange rates given the strong US dollar.

"We're working to realign resources to fuel our highest growth priorities," Porat said.

Big tech firms are grappling with multiple challenges, from inflation to the war in Ukraine, and results in general for the quarter have been muted.

Alphabet, with more than 174,000 employees worldwide, has recruited throughout the pandemic, but announced a slowdown in hiring as ad revenue growth cooled this year.

Many other tech companies have decided to lay off staff, including Netflix and Twitter, or slow the pace of hiring, such as Microsoft and Snap.

- YouTube squeeze? -

Worsening the financial situation for Alphabet is the fact that Google tends not to aggressively promote advertising on its platform with tactics such as trying to convince businesses that more advertising is a smart move during tough economic times, said independent tech analyst Rob Enderle of Enderle Group.

"They don't like the idea of making their money off advertising, so they don't treat the market very well," Enderle contended.

"Now, you are seeing the adverse impact of not taking your revenue source seriously."

The earnings report also showed that ad revenue at YouTube was slightly lower than it was in the same quarter a year earlier, despite a hot trend of people watching video on-demand on the internet.

Alphabet noticed a "pullback in spending" by advertisers at YouTube in the quarter, chief business officer Philipp Schindler said during an earnings call.

"They have a ton of competition in video, and TikTok is probably hitting YouTube pretty hard," Enderle said.

Netflix last week reported that it gained more than two million subscribers in the recent quarter, calming investor fears that the streaming giant was losing paying customers.

The company said it ended the third quarter with slightly more than 223 million subscribers worldwide, up some 2.4 million, after seeing subscriber ranks ebb during the first half of the year.

The turn-around in subscriber growth comes as Netflix is poised to debut a subscription option subsidized by ads in November across a dozen countries.

Rival streaming platform Disney+ is to launch ad-subsidized subscriptions in December.

A.Williams--TFWP