The Clap
Alphabet (NASDAQ: GOOGL) saw its stock decline around 7% in after-hours trading after missing earnings expectations for Q3 2022.
The Deets
The company reported an EPS of $1.06, less than the expected $1.25, and recorded revenues of $69.09 billion, missing expectations of $70.58 billion.
Revenue growth slowed down significantly to 6% in comparison to 41% YoY, their weakest growth since 2013. The decrease in revenue growth is largely due to decreased spending on online ads.
Why this Matters
Alphabet followed in the footsteps of Snap, which signaled trouble for digital ad-reliant companies.
What Now
The company will aim to cut costs as inflation, rising interest rates, and less spending on digital ads take a toll on the top and bottom lines.
