Rich problem – The rapprochement between the GAFAM and the cryptos is verified every day a little more, whether it is the ambitions of Facebook – Meta – in the metaverse, from Apple in the NFTs and of course from Google on various projects related to the blockchain. And when the market crypto coughs in winter, the Silicon Valley giants are also coughing. The third quarter financial results season has arrived and so we learn thatAlphabet – Google’s parent company – records a decrease of its growth. Yes, you read correctly, when the Californian colossus has money worries, it’s because the increase in his income slow down. Everyone has their problems!
Slowing growth at Google
At the end of this monthoctober, the results of the third quarter of American companies are the subject of particular attention from the financial markets. On the lookout for the slightest sign of better or worse, observers await these figures impatiently, but also anxious when the situation is complicated. It is in this context thatAlphabet released its earnings for Q3 – as the americans say – and they are no good.
So, of course, we have to put things into perspective. The company records, in fact, an increase in its income of simply 6 % compared to the same period last year, which is still its worst result since 2013. Revenues posted this quarter are 69,1 billion against 65,1 last year. And compared to the second quarter of this year, we also observe a decrease of the order of 500 millions of dollars. There is therefore a clear slowdown and the cryptos are not there for nothing.
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Crypto and finance, less and less advertising for the sector
Asked to comment on the results of his company in the specialized media, the commercial director of Google, Philip Schindler wanted to contextualize these figures:
“We have seen a decline in spending by some advertisers in certain search areas. And, notably a drop in the insurance, loan, mortgage and crypto sub-categories. »
Because yes, you have understood it, it is with the advertising that Google generates the majority of its income. And platforms like YouTube – owned by Alphabet – have lost customers in the cryptocurrency sector. Observers agree that the drastic fall in the bitcoin price and cryptos coupled with a large uncertainty macroeconomic cause companies to seriously cut back in terms of budget advertising. And, that’s howAlphabet pays the price in fine of this change in the economic paradigm.
Should we be worried about the Mountain View giant? Admittedly, the share price fell by 7,5 % the day after publication, but for all that Alphabet explicitly has the kidneys strong enough to withstand this bad patch. Regarding the sector of cryptocurrenciesthe fall in advertising expenditure is probably only temporary and there is no doubt that Google will happily surf on the recovery of the market when it picks up again. In the meantime, he multiplies his incursions into the blockchainsometimes with bitcoin payments considered and sometimes with Ethereum under the magnifying glass of its search engine.
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