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Alphabet Blames Crypto Ad Spend for a Revenue Slowdown

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NASDAQ: GOOGL

Alphabet, parent company of Google, has blamed a slowdown in ad spending on the cryptocurrency market. The company said that its ads were being blocked by cryptocurrency mining scripts, leading to lost revenue. However, it expects things to normalize soon as the market cools off. Overall, this is a negative development for Alphabet but doesn't suggest current trends will continue indefinitely. This news comes as a surprise, as ad spending on digital platforms has been on the rise recently. However, it's important to keep in mind that this is just one company's experience and that there are other advertisers who are still seeing strong growth. So, overall, this news is disappointing but not unexpected.


Alphabet (A shares)

1. Google (GOOGL) reports its Q2 earnings and shares fall as the company blames a revenue slowdown on increased crypto ad spend. 2. The company expects this trend to continue in the short term, but it doesn’t have any plans to reduce spending on ads related to cryptocurrencies. 3. In its earning letter, Alphabet also restated its guidance for 2019 which sees total revenue growth slowing from previous estimates of 53%. 4. GOOGL is down 3% in after-hours trading following the release of its earnings report


But even without wanton crypto spending, digital ads can still grow.

Digital ad spending is on the rise, and there's no stopping it. Despite a revenue slowdown, ad spend for digital media is still on the rise, as advertisers continue to search for ways to reach their target audience. That's because there are plenty of other options for advertisers to choose from, including programmatic ads, video ads, and retargeting offers. As long as an advertiser can find a way to reach their target audience, they'll be successful online. So, don't be afraid to experiment and find the right ad format for your business. In the meantime, make sure to keep up with industry trends so you can stay ahead of the curve!


NASDAQ: GOOGL

As Alphabet (GOOGL) reports earnings, it's clear that crypto-related ad spending is causing a revenue slowdown. The company expects to make up ground later in the year, as spending on cryptos declines and other businesses pick up the slack. However, while ad spending on cryptos is down, overall Google is still seeing healthy growth. This growth is not immune to industry trends affecting other tech companies too, with advertising revenue from mobile dropping as growth in online advertising slows. Taxpayers are subsidizing these Silicon Valley giants through expensive bug bounties and other programs - watch out for increases next year!


Key Data Points

It's not a good week for Google shareholders - the company reported a slowdown in revenue, likely as a result of regulatory uncertainty around digital assets. While this is bad news for those holding shares, it may also mean increased investment in other areas of the business down the line.


Google blames crypto for its slowdown

Google's ad spending has slowed down because of the crypto craze. The company is reportedly cutting its ad spend by up to 30%. This slowdown could have serious consequences for Google's revenues - particularly in Europe and Asia Pacific where ads are more important than ever. However, despite the slowdown, Google still anticipates double-digit growth this year! So, what does this mean for you? For starters, it's important to be aware of crypto-related ad spend so that you don't get caught off guard. Additionally, keep in mind that although ad spending has slowed down, Google still expects growth this year. So, don't panic just yet!


Not just crypto headwinds, but fiat headwinds, too

For Alphabet, the first half of the year was a mixed bag. Despite strong performance in the first six months of the year, the company's core advertising business reported weaker revenue growth than expected. The slowdown was largely caused by lower crypto ad spend and softer results from YouTube. However, other platforms like Google Services saw stronger revenue growth. While crypto ad spend is expected to rebound in the second half of the year, it's still likely that there will be some headwinds - namely, fiat headwinds. This is because increased regulatory scrutiny and demonetization in India are causing advertisers to pull back from digital advertising. However, Alphabet is still expected to post strong financial performance in the second half of the year.


Invest Smarter with The Motley Fool

Alphabet's revenue has decreased in the last quarter due to a significant increase in ad spend on crypto-based content. This type of spending has significantly impacted traditional advertising and promotions, which have caused Alphabet's revenue to decline. The Fool recommends investing smarter by diversifying into different industries and sectors instead of solely focusing on cryptocurrencies and digital advertising. Doing your research will help you avoid common mistakes made by other investors, so you can have a more successful experience with your crypto investments.


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Stocks Mentioned

Alphabet Inc. (GOOGL) announced on Thursday that it's seeing slower revenue growth, blaming the recent increase in crypto ads spend. The Google parent company says that ad spending across other platforms will offset the decline in digital advertising from search and YouTube. Stocks mentioned: GOOGL, AAPL, NFLX



Conclusion

Digital advertising spending has slowed down on Wall Street recently, with NASDAQ: GOOGL blaming crypto for the slowdown. While crypto spending may have played a role, fiat headwinds have also created challenges for digital ad spending. The Motley Fool has some great advice on how to invest smarter in this uncertain market, and Stocks Mentioned has a list of stocks that trade on NASDAQ: GOOGL. So whether you're invested in crypto or not, make sure to stay informed about the latest digital ad spending trends!


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