Let’s begin with US, where now media sector , digital media sector in fact is worried on Google parent AlphaBets disappointing ads. says there are fears that advertisers have cut back on spending, in the face of an economic slowdown. alphabet earlier said Financial Services spending was cooling on Google. it also plans to cut hiring by more than half.
The negative results shattered many expectations, that Google which is world’s largest advertising platform on digital Marketplace. its share would remain strong in weakening economy. It reinforced worries on Wall Street that inflation will continue to hurt advertising spending. Google’s advertising revenue is 54.4 billion dollar , in third quarter compared with 53.13 billion dollar last quarter.
But it came in below analyst expectations, ad sales on streaming video site , YouTube also declined to 7.07 billion from 7.2 billion dollar in Prior year quarter . alphabets net income was down to 13.9 billion dollar or 1.06 dollar per share from 18.94 billion dollar or 1.4 dollar per share. net income missed analyst expectations of 1.25 per share .companies operating margin declined to 25 percent in third quarter from 32 in their prior year.
Alphabet’s weak results raises concerns for other companies in the sector. especially advertising dependent meta platforms, Facebook parent that reports result today saw shares dropping 4.5 percent. yesterday companies that slowed ad spending including those in financial services such as insurance, smart cages, and cryptocurrencies. travel and Retail advertisers meanwhile help Google search ad Revenue code up.