Tech Giants Are Sliding into a Correction: Alphabet
GOOG stocks
lost 35% of their peak prices. The recent Q3 2022 earnings report added
negative sentiment to the company’s business perspectives and sent stocks even
lower. Investors were disappointed by weak Google search financial performances
and Youtube’s falling advertising revenues. Overall Google adjusted revenues
were reported at $69.1 billion, up by 6% year-on-year. A stronger U.S. Dollar
hammered revenues of most of U.S. corporations, including Google. Without this
factor Google could have seen Q3 revenues above $70 billion.
Other Bets
Alphabet venture fund reported losses of $1.6 billion or over $6.4 billion for
the financial year and this is certainly not the result investors wanted to see
at a time when the company is seeking for new growth drivers. Google cloud
business is also struggling with the loss of $699 million in the Q3 2022
compared to losses of $644 million in the Q3 2021 despite growing revenues by
37% year-on-year.
Google is
seen to be faced with rising overall costs by $8 billion compared to the same
quarter of 2021 and a rise of $1.8 billion during the previous quarter to $52
billion. These figures are very disturbing amid slowly growing revenues so it
is seen to be very risky at the moment to invest in Google stocks.
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