Advertiser pullbacks enabled youtubethe video streaming service from alphabet inc Google WELL intensified in the third quarter.
What happened: Alphabet’s Chief Business Officer Philip Schindler said on the third-quarter conference call, “During the second-quarter conference call, we saw a decrease in spend from some advertisers on the YouTube network, and those decreases…accelerated in the third quarter.”
The pullback wasn’t just limited to video streaming, it also extended to search, with Schindler noting its emergence in “certain areas” such as financial services like insurance, loans/mortgage, and cryptocurrencies.
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Why it matters: Alphabet’s CFO Ruth Porat Pointed to the strong dollar and said overall revenue growth of 6% would have been 11% in constant currency.
“As we move into the fourth quarter, we expect even greater headwinds from FX due to the strengthening of the US dollar in the quarter to date,” Porat said.
Alphabet reported third-quarter revenue of $60.09 billion, which was below street estimates of $70.09 billion, according to estimates Benzinga Pro data.
Earnings per share came in at $1.06, below analyst estimates of $1.27.
Price promotion: On Tuesday, Alphabet’s Class A shares fell 6.6% in the after-hours session to $97.60 after closing 1.9% higher in regular trading at $104.48. The company’s Class C shares fell 6.7% to $97.93 in extended trading after closing 1.9% higher at $104.93.
Continue reading: Meta-Analyst Sees Higher Upside for Stocks vs. Google Amid Subdued Sentiment Over Metaverse
