Rich problem – The rapprochement between the GAFAM and the cryptocurrencies occurs a little more every day, whether it’s Facebook’s ambitions – Half – in the metaverse, from Apple in the NFT and obviously from Google on various projects related to the blockchain. And when the market crypto cough in winter, even Silicon Valley giants cough. The third quarter financial results season is here and so we learn itAlphabet – Google’s parent company – registrations a diminish of its growth. Yes, you read that right, when the Californian giant has economic worries it is because its increase income slow down. Everyone has their problems!
Slow growth at Google
At the end of this monthOctober, the results of the third quarter of the American companies are the subject of particular attention on the part of the financial markets. Looking for the slightest sign of better or worse, observers await them figures impatient, 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’re not good.
So obviously we need to put things in perspective. The company records, in fact, an increase in its income of mere 6% compared to the same period last year, which is still his worst result since then 2013. The revenues recorded this quarter are 69.1 billions against 65.1 last year. And compared to the second quarter of this year, we also observe a decrease of the order of 500 million dollars. There is therefore a marked slowdown and the cryptocurrencies I’m not there for nothing.
>> Returns playing with bear market, it’s on AscendEX (trade link) <
Cryptocurrencies and finance, less and less advertising for the sector
When asked to comment on the results of his company in the specialized media, the commercial director of Google, Filippo Schindle wanted to contextualize these figures:
“We have seen a decline in the spending of some advertisers in certain areas of research. And, in particular, a decline in the sub-categories of insurance, loans, mortgages and cryptocurrencies.”
Because yes, you get it, it is with the advertising that Google generates most of its income. And platforms like Youtube – owned by Alfabeto – have lost customers in the cryptocurrency industry. Observers agree that the drastic drop in the bitcoin price and cryptocurrencies along with a large uncertainty macroeconomic to induce companies to seriously cut in terms of budgets advertising. And here’s howAlphabet pay the price definitely of this change of economic paradigm.
Should we worry about the Mountain View giant? Sure, the stock price has gone down 7.5% the day after publication, but for all of this Alphabet explicitly has kidneys strong enough to withstand this ugly patch. As for the sector of cryptocurrenciesthe decline in advertising spending is probably only temporary and there is no doubt Google it will happily cruise on the market recovery when it resumes. Meanwhile, he multiplies his forays into the blockchainsometimes with bitcoin payments considered and sometimes with Ethereum under the magnifying glass of its search engine.
When GAFAMs look at cryptocurrencies, they don’t forget to grab their piece of the pie! Do you also want juicy crops? Go to register on the AscendEX platform and participate in the Earnings program (commercial link).