The full force of the U.S. Federal Reserve's aggressive interest rate hikes is starting to be felt during third-quarter 2022 earnings. Even mighty Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) and its main Google Search moneymaker is feeling the hurt. Year-over-year revenue growth slowed to a 6% trickle in Q3 and totaled $69.1 billion. 

But just how much of a drain was the Fed's actions on Alphabet's earnings? Let's break it down.

The Fed's record increase in interest rates this year has had a nasty side effect: a record run-up in the value of the U.S. dollar. As a refresher, when the dollar increases in value versus other currencies, that lowers the value of international revenue for a company that's based in the U.S. Google is very much an international company, so the dollar's strength has taken a big bite out of reported growth. Backing out exchange rates, top-line revenue increased 11% year over year in Q3.  

Continue reading

Source Fool.com