Google’s parent company Alphabet (NASDAQ: GOOG) reported its third-quarter earnings on Tuesday, October 24, 2023, after the market closed. The results were mixed, as the company beat analysts’ expectations for both revenue and earnings per share, but missed on its cloud segment growth. The Market reacted negatively to the news, GOOG dropping 9% on Wednesday, October 25, 2023, to close at $126.51 per share. This was the worst single-day performance for Google stock since October 26, 2022, when it fell 9.1% following an earnings miss. What Went Wrong for Google? Google is one of the dominant players in the online advertising market, which accounts for most of its revenue and profits. The company has been benefiting from the increased demand for digital ads during the pandemic, as more people shifted to online activities such as shopping, entertainment, education, and work. However, as the economy reopens and consumers resume their offline behaviors, Google faces some headwinds that could...
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