Alphabet, the parent company of Google, reported a 13th consecutive quarter of double‑digit revenue growth in Q3 2023. The overall revenue increased by 25% to $127.6 billion, while the advertising revenue from Google and YouTube – the company’s main source of income – grew only 12% to $63.4 billion, falling short of analysts’ expectations. Net income dropped to $26.2 billion, a quarter less than the previous year, and earnings per share fell to $2.12 from $2.87.
Wall Street had been expecting a profit closer to $3 per share, and the market reacted negatively. On the day of the earnings release, Alphabet’s stock price fell sharply.
Alphabet maintained big spending on AI, with revenue from Google Cloud growing 103% year-over-year, indicating the company’s strategic focus on AI and cloud computing.
For now, Alphabet’s leadership remains committed to its long‑term vision, even as the company navigates these near‑term headwinds.
The company’s heavy spending on AI infrastructure was evident, with significant investments directed toward data centers and AI chips to support its growing cloud and search businesses.
For now, Alphabet’s leadership remains committed to its long‑term vision, even as the company navigates these near‑term headwinds.
- Alphabet’s Q3 2023 revenue grew 25% to $127.6 billion. - Google’s search advertising revenue increased 12% to $63.4 billion. - YouTube’s advertising revenue was $11.2 billion. - Net income dropped to $26.2 billion, a quarter less than the previous year, and earnings per share fell to $2.12 from $2.87. - Alphabet’s stock price fell sharply on the day of the earnings release.