Alphabet Blames Crypto Ad Spend for a Revenue Slowdown
Google parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has been clobbered this year. After another round of punishment following the third-quarter 2022 update, shares are now down 38% this year with just two months left to go until the new year.
The latest blame can be levied against a big slowdown in digital ad revenue at Google. Why? Some advertising buyers -- specifically, cryptocurrency businesses -- are reining in their promotional budgets.
Google's advertising engine started to stall in the second quarter of 2022, and that trend continued in Q3. Google ad revenue was up only 2.5% from a year ago (it increased 11.6% in Q2). Numerous reasons were given for the slump, but Google Chief Business Officer Philipp Schindler offered this explanation on the earnings call:
Source Fool.com
