Google parent company: Strong advertising business, disappointing growth in the cloud business

Google parent company: Strong advertising business, disappointing growth in the cloud business

According to a report by finanzen.net, Google's parent company Alphabet has released its financial results for the third quarter. Sales rose by 11 percent to around $76.7 billion. However, growth in the cloud business, which grew by 22 percent, disappointed investors. Revenues of a good $8.4 billion missed market expectations and the operating profit of $266 million was below the expected $430 million. Google's advertising business, on the other hand, grew by 9.4 percent to $59.65 billion. Alphabet's quarterly profit rose more than 40 percent year-on-year to almost $19.7 billion. Alphabet shares fell 9.51 percent after the quarterly figures were announced.

The disappointing results from Alphabet's cloud business could have an impact on the market and the industry. Since the cloud business is a key growth driver for technology companies, Alphabet's poor performance could have a negative impact on other companies in the industry. Investors may reconsider their investments in the cloud computing space and lose confidence in other companies in the industry.

In addition, the decline in Alphabet's stock price may also have an impact on consumers. Since Alphabet is one of the largest companies in the world and Google is a major player in the online advertising business, the negative results could affect consumer confidence. Companies may reduce their advertising budgets or seek alternative advertising channels, which could ultimately result in lower revenue for Alphabet.

Overall, Alphabet's poor performance in the cloud business shows that competition in this industry is intense and that companies need to evolve their cloud computing offerings and investments to remain competitive.

Source: www.finanzen.net