Alphabet earned $76.69 billion in the last quarter

Alphabet, the parent company of Google, reported an impressive revenue in the third quarter of 2023, reaching $76.69 billion. This figure exceeded analysts' forecasts of $75.97 billion.

An important aspect of the success was the growth of the company's advertising revenue, which amounted to $59.65 billion, compared to the previous $54.48 billion. Experts had predicted the amount of $59.12 billion. In particular, YouTube advertising revenue amounted to $7.95 billion, up from $7.07 billion a year earlier. It was predicted that this figure would be $7.81 billion.

Despite the success, there was a noticeable increase in advertising spending in some segments, such as retail and travel. However, Alphabet also reduced its budget in other areas, which affected the company's main source of profit.

The firm's net profit for the last quarter was $19.69 billion, compared to $13.91 billion a year earlier. Despite this success, Alphabet's quotes fell by about 5% after the report was released.

The drop indicates the desire of market players to see Alphabet and Google succeed more in the field of artificial intelligence. In addition, it is indicative of the competition in the cloud services industry, where Alphabet is competing with rivals such as Azure and AWS.

Concerns about slowing global economic growth have led to a cap on spending on cloud services. Among other factors, revenue growth in Google's cloud segment slowed to 22.5% in July-September, down from 28% growth in the previous quarter.

According to the report, Google Cloud received $8.41 billion in revenue in the last quarter, which is the lowest growth rate for this segment since the beginning of 2021. Also important is the information on cloud computing revenue, which amounted to $266 million, compared to a loss of $440 million in the previous year. Analysts had expected revenue of $8.62 billion for this segment after the end of the quarter.