Rich problem – The rapprochement between the GAFAM and the cryptos getting a little more verified every day, whether it’s Facebook’s aspirations – meta – in the metaverse, from Apple in the NFTs and of course from Google on different projects related to the block chain. And when the market cryptocurrency cough in winter, the Silicon Valley giants also cough. The season of third quarter financial results is upon us and we are learningAlphabet – Google’s parent company – registers one to shrink of its growth. Yes, you read that right, if the California behemoth has money worries, it’s because of the increase in his income to slow down. Everyone has their problems!
Growth slowdown at Google
At the end of this monthOctober, the third quarter results of US companies are the subject of particular attention from the financial markets. Looking for the slightest sign of better or worse, observers wait for this figures impatient, but also anxious when the situation is complicated. It is in this context thatAlphabet has released its earnings for Q3 – as the Americans say – and they are no good.
So, of course, we have to put things in perspective. The company records an increase in its income of simply 6% compared to the same period last year, which is still the worst result since 2013. Revenue posted this quarter is 69.1 billion against 65.1 last year. And compared to the second quarter of this year, we’re also seeing an order of magnitude decline of 500 million of dollars. So there is a clear delay and the cryptos are there for a reason.
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Crypto and finance, less and less advertising for the sector
Asked to comment on his company’s results in the specialized media, Google’s commercial director, Phillip Schindle wanted to contextualize these numbers:
“We’ve seen a drop in some advertisers’ spend in certain search areas. And in particular a decrease in the insurance, loans, mortgages and crypto subcategories. »
Because yes, you got it, it is with the commercial break that Google generates most of it income. And platforms like YouTube – owned by Alphabet – customers have been lost in the cryptocurrency sector. Observers agree that the drastic drop in bitcoin price and cryptos in combination with a major insecurity macroeconomics are causing companies to cut back considerably commercial break. And so it isAlphabet pays the price in the end of this change in the economic paradigm.
Should we be concerned about the Mountain View giant? True, the share price fell 7.5% the day after publication, but before all that Alphabet explicitly has the kidneys strong enough to withstand this bad spot. As for the sector of cryptocurrenciesthe fall in ad spending is probably only temporary and there is no doubt about it Google will happily surf the market’s recovery when it picks up again. Meanwhile, he multiplies his raids in the block chainsometimes with bitcoin payments considered and sometimes with Ethereum under the magnifying glass of its search engine.
When the GAFAM looks at cryptos, they don’t forget to get their piece of the pie! Do you also want juicy yields? Go register on the AscendEX platform and join the Earn program (commercial link).