Alphabet shares have worst day since March 2020

Shares of Alphabet dipped as much as 8% on Wednesday, a day after the company released third-quarter earnings that missed on the top and bottom lines. Revenue growth slowed to 6% from 41% a year earlier as the company contends with a continued downdraft in online ad spending.

It has become the company’s worst day since March 2020 after it released third-quarter earnings Tuesday that missed on the top and bottom lines.

The company reported its weakest quarter of growth since 2013 except for one other period early in the coronavirus pandemic. Revenue growth slowed to 6% from 41% a year earlier as the company contends with a continued downdraft in online ad spending.

The company reported overall advertising revenue of $54.48 billion during the quarter, up slightly from the prior year. Analysts were expecting an increase of about 3% in YouTube ad revenue, but it slid around 2% to $7.07 billion from $7.21 billion a year ago.

As Google’s ad revenues decelerate, the company has become “increasingly uncomfortable” over the last six months. Google is an ad business first, and digital ads is no longer a safe place to hide.