Alphabet misses Street estimates as ad business slips after pandemic run-up

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Alphabet Inc on Thursday fell short of Wall Street's expectations for quarterly profit and revenue as the Google parent's digital ad business struggled with an economic slowdown that has choked corporate spending and triggered mass layoffs.

"Despite being seen as one of the most insulated companies in the advertising space relative to peers, Alphabet's poor quarter is the latest sign that worsening fundamentals and a tough macroeconomic environment are prompting advertisers to cut back on spending," said Jesse Cohen, senior analyst at Investing.com., promising to further slash costs and boost offerings to better capitalize on ad dollars.

Adjusted profit of $1.05 per share fell short of an expected $1.18 per share, according to Refinitiv. Google is the world's largest digital ad platform by market share, making it uniquely susceptible to fluctuations in online marketing spending. Its YouTube division has faced a surge in rival platforms, particularly TikTok, whose endless scroll of short video is drawing younger users away.

Cloud was a bright spot, however, with revenue growing 32% to $7.32 billion, but at its slowest pace since the company began disclosing the segment's revenue numbers.cut 12,000 jobs last month

 

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