Alphabet shares fall in after-hours trading

Alphabet shares fell in after-hours trading on Tuesday after the company reported weaker-than-expected earnings and revenue for the third quarter.

Revenue growth slowed to 6% from 41% a year earlier as the company struggled with a continued decline in online ad spending. It's the weakest period for growth since 2013, except for a period early in the pandemic. YouTube ad revenue fell nearly 2% to $7.07 billion from $7.21 billion a year ago. Analysts had expected an increase of about 3%. Alphabet reported total ad revenue of $54.48 billion during the quarter, up slightly from a year earlier. The report was an ominous start to the Big Tech earnings week for investors focused on the digital ad market. Last week, Snap posted disappointing results and said it could not provide a forecast due to volatility in spending and concerns about the economy. Meta is scheduled to release results on Wednesday and analysts expect revenue to fall in the second quarter as well. Before the after-hours drop, Alphabet shares were down 28% for the year, slightly underperforming the Nasdaq. Alphabet's top executives addressed the challenges facing the company at the start of Tuesday's earnings release. CEO Sundar Pichai said in a statement that the company is "focused on a clear set of products and business professionals," while finance chief Ruth Porat said "we are working to realign resources to support our highest growth priorities." During the quarter, Google Cloud generated $6.9 billion in revenue, more than analysts had expected. This is a significant increase from the previous year's $5 billion. Losses at Google Cloud totaled $699 million, up from $644 million a year earlier. During the quarter, Google Cloud generated $6.9 billion in revenue, more than analysts expected. This is a notable increase from $5 billion a year earlier. However, the group's loss rose to $699 million from $644 million a year earlier. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!