[ad_1]
Advertiser pullbacks on YouTube, the video streaming service of Alphabet Inc GOOGL GOOG intensified in the third quarter.
What Happened: Alphabet Chief Business Officer Philipp Schindler said on the third-quarter earnings call, “On the Q2 call, we noted a pullback in spend by some advertisers on YouTube network, and these pullbacks … increased in the third quarter.”
The withdrawal was not only limited to video streaming, but also extended to search, with Schindler noting its occurrence in “certain areas” like financial services such as insurance, loan/mortgage, and cryptocurrencies.
See Also: How To Buy Technology Shares
Why It Matters: Alphabet CFO Ruth Porat pointed to the strong dollar and said headline revenue growth of 6% would have been 11% in constant currency.
“Looking to the fourth quarter, based on the strengthening of the U.S. dollar quarter-to-date, we expect an even larger headwind from foreign exchange,” said Porat.
Alphabet reported third-quarter revenue of $60.09 billion, which came in below the $70.09 billion street estimates, according to Benzinga Pro data.
Earnings per share came in at $1.06, which was lower than the $1.27 estimate from analysts.
Price Action: On Tuesday, Alphabet Class A shares fell 6.6% lower to $97.60 in the after-hours session after closing 1.9% higher at $104.48 in regular trading. The company’s Class C shares dropped 6.7% to $97.93 in extended trading after closing 1.9% higher at $104.93.
Read Next: Meta Analyst Sees Higher Upside For Stock Versus Google Amid Subdued Sentiment Towards Metaverse
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.