Shulou(Shulou.com)11/24 Report--

Phoenix New Media Technology News Beijing time on October 26 news, Google's parent company Alphabet released third-quarter revenue and profit data are lower than analysts expected, dragging down the share price in after-hours trading fell more than 6%, the market value lost about $40.9 billion (about 300 billion yuan). This shows that search advertising giants like Google are not immune from the slowdown in the digital advertising market. At the same time, Microsoft's cloud revenue fell short of expectations in the first quarter, and its shares fell about 7% in after-hours trading, wiping out about $123.5 billion (900 billion yuan) in market value.

Excluding payments to distribution partners, Alphabet posted third-quarter sales of $57.27 billion, below the average analyst estimate of $58.18 billion, and net income of $1.06 a share, below Wall Street's estimate of $1.25.

"when something goes wrong with Google, it bodes ill for the entire digital advertising market." Evelyn Mitchell (Evelyn Mitchell), an analyst at research firm Insider Intelligence, wrote in an emailed statement.

As rising inflation suppresses the growth of digital advertising, competitors such as Google, Facebook and Snapchat, an instant app, are scrambling for smaller advertising budgets. Last week, Snap, the parent company of Snapchat, reported its slowest quarterly sales growth in history, causing Snap's share price to plummet and dragging down Alphabet's share price. Google's search business is less vulnerable to economic fluctuations than social media advertising, but the business is starting to show signs of weakness.

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