Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) shares are trading lower going into the close of Thursday’s session. Shares are falling on downward momentum after the company this week reported third-quarter financial results and amid overall tech sector weakness.
Alphabet stock is also moving lower Thursday alongside Meta Platforms Inc during Thursday’s session. Meta reported a 23% YoY revenue increase to $34.15 billion and a 168% rise in earnings per share to $4.39.
Daily active users in the Meta family increased by 7% to 3.14 billion, with 3.96 billion monthly active users…Read More
What Happened With Alphabet Earnings?
Alphabet’s third-quarter revenue grew by 11% YoY, reaching $76.69 billion, surpassing the expected $75.94 billion consensus estimate. The tech company’s quarterly earnings were $1.55 per share, exceeding analyst predictions.
Alphabet stock is down roughly 11% following the earnings report…Read More
Why Meta Earnings Matter To Alphabet
A significant portion of both Alphabet and Meta Platforms’ revenue comes from advertising. Google’s primary revenue source is its advertising services, including Google Ads. Meta Platforms generates the majority of its revenue through advertising on platforms like Facebook, Instagram and WhatsApp.
Any fluctuations in advertising revenue for these companies, as investors are closely watching for, can have a direct impact on their stock prices.
Broader economic conditions and market trends can impact advertising budgets. During economic downturns or uncertain times, companies may reduce their ad spending, affecting advertising platforms’ revenue.
According to data from Benzinga Pro:
- GOOGL is trading lower by 2.3% to $122.70
- GOOG is trading lower by 2.2% to $123.91
