Connect with us

Entrepreneur Stories

Alphabet’s Q3 Revenue Growth Expected to Slow Amid Rising Competition in Search and YouTube Ads!

Published

on

Alphabet's Q3 Revenue Growth Expected to Slow Amid Rising Competition in Search and YouTube Ads!,Startup Stories,Startup Stories India,Inspirational Stories 2024,Latest Technology News and Updates,2024 Technology News,Tech News,startup news,Alphabet Q3 revenue growth,YouTube ad competition,Google search competition,Alphabet earnings report,Q3 2023 financial outlook,Digital advertising trends,YouTube revenue challenges,Search engine market share,Alphabet revenue forecast,Online advertising competition,Alphabet Q3,Alphabet Q3 Revenue,Google,Alphabet Financial Performance,Alphabet YouTube's Revenue Challenges,Alphabet

Alphabet, Google’s parent company, is projected to report its slowest revenue growth in four quarters on Tuesday, primarily due to heightened competition impacting its core Google Search business and dampening YouTube ad spending. This anticipated slowdown in these key segments is likely to overshadow growth from its cloud-computing unit, which has seen AI-driven gains this quarter. The quarter also marks the first since Anat Ashkenazi succeeded Ruth Porat as Alphabet’s Chief Financial Officer, a role she assumed amidst intensified scrutiny and competitive pressures.

Competitive Landscape

Google’s established dominance in digital advertising is facing new challenges from companies like Amazon and TikTok, which have increasingly attracted advertisers looking to engage large, ready-to-buy audiences. Analysts predict that Google Search and other related revenues will grow by 11.6% in the third quarter, a decrease from 13.8% growth in Q2, according to Visible Alpha data.

Additionally, new entrants like Perplexity AI and ChatGPT are gaining traction in search through generative AI, raising concerns that Google’s perceived slow response to these developments could further disrupt its market stronghold. Analysts at MoffettNathanson anticipate significant changes in Google’s ability to retain its exclusive search advantage on Apple and Android devices in the U.S.

Market Share Dynamics

A recent report from eMarketer indicates that Google’s share of U.S. search ad revenue could fall below 50% next year for the first time in 18 years. Amazon’s share is expected to climb to 24%, while other generative AI players continue to attract advertising dollars. In response, Google has started integrating ads into AI-generated summaries at the top of search results, a strategy analysts believe could help maintain its competitive edge.

Financial Performance

Alphabet’s stock experienced a nearly 9% drop in the three months leading to September, marking its largest quarterly decline since Q3 of 2022. However, it remains up by 17% for the year. Analysts estimate Alphabet’s overall Q3 revenue to have grown by 12.6% to $86.31 billion, slightly below the 13.6% growth seen in the prior quarter.

YouTube’s Revenue Challenges

YouTube has also felt the impact of advertisers shifting budgets toward ad-supported streaming services such as Netflix and Amazon Prime Video. YouTube’s revenue likely grew by 11.5% in Q3, down from a 13% increase in Q2. However, analysts at Truist suggest that YouTube, particularly YouTube TV, may have benefited from increased political ad spending during this quarter.

Bright Spots: Google Cloud

A bright spot for Alphabet remains Google Cloud, which is expected to achieve a 29.2% growth rate, marking the largest jump in seven quarters as companies invest more heavily in its AI offerings, including the Vertex AI platform that allows customers to leverage Google’s AI models or develop custom solutions. Alphabet has flagged higher capital expenditures this year as it expands its AI capabilities.

Cost Management Focus

With Ashkenazi now at the helm as CFO, there is an added focus on cost management amid rising competition. Analysts speculate about the possibility of further cost-cutting measures beyond Alphabet’s limited layoffs planned for 2024. The financial community will closely watch Ashkenazi’s strategies to contain rising expenses while maintaining competitive AI investments in the upcoming quarters.

Conclusion

As Alphabet prepares for its quarterly earnings report, the anticipated slowdown in revenue growth highlights the challenges it faces from increasing competition and shifting advertiser preferences. While Google Cloud shows promising growth driven by AI demand, Alphabet must navigate these pressures carefully to maintain its position as a leader in digital advertising and cloud computing.

The upcoming financial results will provide critical insights into how effectively Alphabet is adapting to these challenges and whether its strategies under new leadership can sustain long-term growth amidst a rapidly evolving tech landscape.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Entrepreneur Stories

Meta’s Upcoming AR Glasses: A Sneak Peek

Published

on

Meta’s Upcoming AR Glasses: A Sneak Peek,Startup News,Startup Stories 2025,Startup Stories India,Tech News,Meta,AR Glasses,Ray-Ban Smart Glasses,OLED displays,Qualcomm Snapdragon,AR and AI,Meta unveils new AR glasses with heart rate monitoring,Meta’s Upcoming AR Glasses,Meta News,Meta Latest News,Meta Updates,Meta Latest Updates,Orion AR glasses,Meta AR glasses,Meta's upcoming ar glasses,Meta Upcoming AR Glasses,Meta AR Glasses News,Meta AR Glasses Latest News,Meta AR Glasses Update,Meta AR Glasses Latest Update,Ray-Ban,Marketing,Apple,Google,Meta's AR glasses with Mark Zuckerberg,Mark Zuckerberg,Mark Zuckerberg Latest News,Mark Zuckerberg News,Technoly,Electronics,

Meta is developing its first true AR glasses, set to launch in 2027. Before the public release, employees will test the device starting in 2024. The company is also releasing new generations of Ray-Ban smart glasses in 2023 and 2025 with enhanced features like a “viewfinder” display.

Specifications and Features

The AR glasses are expected to feature OLED displays and Qualcomm Snapdragon chipsets, offering sophisticated AR and AI capabilities. They will enable users to interact with virtual objects and project high-quality holograms of avatars onto the real world.

Design and Competition

Meta aims for a sleek design, potentially building on its Ray-Ban partnerships. The AR glasses market is competitive, with Apple and Google also investing heavily. Meta seeks to make its AR glasses a game-changer by offering a unique user experience.

Future Plans

In addition to AR glasses, Meta is expanding its VR offerings with new headsets like the Quest 3 and exploring other wearable technologies. The company is focused on reducing costs to make the AR glasses more consumer-friendly by launch.

Continue Reading

Entrepreneur Stories

From Digital Wallet to Stock Market: MobiKwik Expands Its Horizons with New Brokerage Venture

Published

on

From Digital Wallet to Stock Market: MobiKwik Expands Its Horizons with New Brokerage Venture

MobiKwik is venturing into the stock broking sector with the launch of its subsidiary, MobiKwik Securities Broking Private Limited (MSBPL), following approval from the Ministry of Corporate Affairs on March 3, 2025. This move aims to diversify MobiKwik’s offerings beyond its core digital payments services and compete with established players like Zerodha and Groww.

MSBPL will provide a range of brokerage services, including trading in shares, securities, commodities, and derivatives. The subsidiary has an initial capital of Rs 1 lakh, with plans for an additional Rs 2 crore investment to support its operations.

As MobiKwik enters this competitive market, it brings a substantial user base of 172 million and a merchant network of 5 million. Despite recent financial challenges, including a reported loss of Rs 55.2 crore in Q3 FY25, the company aims to leverage its existing infrastructure and user engagement to capture a share of the growing investment technology market, projected to reach $74 billion by 2030.

This strategic expansion aligns with MobiKwik’s broader goals of enhancing its financial service

Continue Reading

Entrepreneur Stories

Strategic Shift: Nazara Sells Entire Stake in Sports Unity Amid Financial Challenges

Published

on

Strategic Shift: Nazara Sells Entire Stake in Sports Unity Amid Financial Challenges

Nazara Technologies has sold its entire 71.54% stake in Sports Unity Private Limited, the company behind the multiplayer quiz game ‘Qunami’, for INR 7.15 lakh. This divestment, effective March 25, 2025, signifies a strategic shift for Nazara, which had previously acquired a controlling interest in Sports Unity in 2019 for INR 7.5 crore.

The decision to offload the stake comes as Sports Unity has faced financial difficulties, reporting no active business operations and a negative net worth of INR 0.45 crore at the end of FY24. This move aligns with Nazara’s broader strategy to streamline its operations and concentrate on more profitable ventures within the gaming sector.

This sale follows Nazara’s recent divestment of a 94.85% stake in another subsidiary, Open Play, to Moonshine Technologies for INR 104.33 crore. Despite reporting record quarterly revenue of INR 544.7 crore in Q3 FY25, Nazara experienced a 53.5% decline in net profit year-over-year.

Nazara continues to focus on enhancing its portfolio through strategic acquisitions and investments in high-potential gaming platforms while navigating the competitive landscape of the gaming industry.

Continue Reading
Advertisement

Recent Posts

Advertisement