Google’s parent Alphabet posted lower than expected September quarter revenue results as a slow down in digital advertising platforms takes hold.
Third quarter revenue was up 6% to $US69.1 billion, reflecting growth in Search and momentum in Cloud, but lower than expectations by market analysts.
YouTube revenue fell for the first time, down 0.2% to $US7.07 billion.
Google network advertising came in at $US54.48 billion, only slightly ahead of the $53.13 billion for the same quarter last year.
A weak result for the world’s biggest digital advertising platform puts a cloud over other players, including social media platform Metanwhich also this week is due to report its latest results.
Earlier this week shares in digital media platforms fell after Snap reported slow growth in advertising revenue with brands pulling back their budgets in the face of deteriorating economic conditions.
Google is now slowing hiring and working on “moderating operating expense growth”.
CEO Sundar Pichai said: “We’re sharpening our focus on a clear set of product and business priorities.
“Product announcements we’ve made in just the past month alone have shown that very clearly, including significant improvements to both Search and Cloud, powered by AI, and new ways to monetise YouTube Shorts.
“We are focused on both investing responsibly for the long term and being responsive to the economic environment.”
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