Alphabet Stock Is a Buy and It's All Thanks to Google Cloud
Tech giant Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is commonly associated with Google's digital advertising business. After all, advertising income accounted for $54.5 billion of Alphabet's $69.1 billion in third-quarter revenue.
So on Oct. 25, when the company reported disappointing Q3 earnings in its ad business, the result propelled a stock price decline, reaching a 52-week low on Nov. 3.
The sell-off is an understandable reaction to Alphabet's modest 2.5% year-over-year Q3 ad revenue growth, combined with YouTube's first ever year-over-year ad sales decline since the division's revenue was broken out in 2019. Alphabet's weak ad revenue results were due to a slowdown in the advertising industry, sparked by this year's uncertain macroeconomic environment.
Source Fool.com
