Alphabet, parent company of Google. saw profit and revenue below Wall Street estimates as it was squeezed by a slowdown in the digital ad market and following last month's news of massive layoffs.

Closing Bell

Alphabet Shares Tumble as Profit, Revenue Miss Estimates

Welcome back to closing down cheddar news everyone, you're taking a live look at alphabet stock in the after hours shares, tanking 6% as earnings come in from google's parent company. So I want to bring back in cheddar news, senior reporter Michelle Castillo leo for these results. Michelle. So christians not great. It was not a great quarter for alphabet. Let's start with Google's parent company. They had earnings that came in a dollar and five cents. That is well below the estimate of $1.18 set by refinitiv analysts. We also saw revenue come in light 76 point oh five billion versus the estimate of 76.53 billion. Now diving deeper into those numbers, we do see some discrepancies in what the street was expecting. Let's start with Youtube revenue, which they started breaking out last year. Um, advertising revenue came in light as well. 7.96 billion versus the street account estimate of 8.25 billion. And google cloud revenue also 7.32 billion. A lot of people looking, especially with alphabet. Sorry, with amazon showing 20% year over year growth in um, their AWS segment that Google's revenue was lighter than the street was expecting. Uh, 7.43 billion Google came in at 7.32 billion when it comes to google cloud. Now you have to look across the board. We are seeing a slowdown in cloud earnings alphabets. Just to, sorry, uh, amazon's cloud division was the slowest growth rate in year over year revenue growth since 2014 Google missing estimates. So this one bright spot that a lot of people were counting on the idea that a lot of remote companies we're gonna move to the cloud. Um, It does seem like a lot of people are pulling back in in investing in google and amazon cloud services at this time, and then overall just looking at the digital media landscape digital advertising, which