“Our plans for 2023 will continue to make significant trade-offs where necessary,” said Pichai. “Throughout Google’s history, periods of intense effort have allowed Google to emerge strongly.”
The stock fell to $96.71 after closing at $104.48 in New York.
There have been disappointing results across Alphabet’s vast portfolio. The company’s financial engine, search and other related businesses, had sales of $39.54 billion for him in the third quarter, compared with analyst estimates of $40.87 billion for him. Google Chief Business Officer Philipp Schindler says some advertisers are starting to cut spending.
Google’s YouTube fell even further short of the mark, reporting ad revenue of $7.07 billion, compared to the average analyst estimate of $7.47 billion.
After another disappointing second quarter, YouTube is embroiled in a fierce battle for ad budgets and user attention. Byte Dance Co., Ltd.of tick tockYouTube has released a short-form video platform called Shorts to counter TikTok’s popularity, but analysts say the company still has room to make up.
Insider Intelligence analyst Evelyn Mitchell said: “To be completely dependent on search performance is not a good thing.”
One bright spot was Google’s closely watched cloud services, which lost $699 million, beating analysts’ expectations of a loss of $814.25 million. The division is not yet profitable, and Google is the third largest in the cloud market, not even in second place. Amazon.com, Inc. When MicrosoftStill, the cloud business is seen as one of the company’s best bets for growth as its core search business matures.
Alphabet’s Other Bets, a collection of start-ups that includes self-driving car company Waymo and life sciences unit Verily, made $209 million against losses of $1.61 billion. In September, Verily, which has experimented with diabetes-detecting contact lenses and launched a Covid-19 testing program, announced it had raised US$1 billion in a new investment led by its parent company.
GlobalX ETF research analyst Tejas Desai said Google is taking steps to keep costs down during the recession, but it will take time to see results.
“This is big business. It takes time to lose fat,” he said.