Google has achieved the slowest revenue growth of 3 years. While the competition in the advertising field, where the company has been operating for years, has been on the rise, the stumbles on smartphone production and the devastating changes on YouTube have left the company behind.
At the closing of the stock market, Alphabet shares fell by 7.5 percent, approaching the largest single daily drop of 8 percent in October 2012. The company had to close the day at a record level of $ 1,296,20.
Ruth Porat, Financial Investor of Alphabetin, attributed this low-income growth to the fluctuation in exchange rates, competition and product changes that he did not specifically mention.
While the company is experiencing pressure to stop serious ads by advertisers on YouTube, which continues to grow, Google has a hard time choosing the right ad models to be offered to emerging markets and smart speakers.
Regarding the slowness of sales growth, Porat said that changes that were not specifically specified on YouTube brought up first-quarter revenues a year ago, and nothing happened that would cause a decline this year.
In the meantime, Alphabet revenue of 85 percent of the revenue, link, banner and commercial products are composed of Google ads.
The company's CEO, Sundar Pichai, said the company's long-term plans are focused on the slowness of income is expected. Speaking in a conference call, Pichai said:
There may be differences from a quarter to quarter, but we will continue to rely on the opportunities we see.
The company's main competitors in advertising spending, Facebook Inc, Snap Inc, Amazon.com Inc, and Twitter, Inc., reported last week, were below or below analysts' expectations.
According to Alphabet, quarterly revenues increased by 17 percent compared to 36.3 billion a year earlier. However, this increase is less than $ 1 billion from Wall Street Analysts' estimates, according to Refinitiv's IBES data.
The company said that when the exchange rate fluctuations were adjusted, the revenues would overlap with the expectations. It is possible to say that Alphabet has faced the slowest growth since the 17% growth in the first quarter of 2016.