- Premarket Wednesday saw Nasdaq stock futures fall 1.5% after Alphabet failed to report earnings and revenue.
- YouTube’s first ever decline in ad revenue has caused concerns about 3Q Big Tech’s financial results.
- Meta and Amazon both fell as tech worries overtook them, while Microsoft plummeted after earnings.
Stocks NasdaqPremarket trading fell Wednesday after a disappointing financial update issued by Google parent. AlphabetConcerns were raised about the slow start to Big Tech earnings week.
Futures on the tech-heavy US stock market index dropped 1.51%. This was slightly after a deeper slide earlier today, which was dragged along by losses for Alphabet, Microsoft, and other post-results. Meanwhile, S&P 500 futuresAnd it dropped to 0.67% Dow Jones Industrial Average futuresAt Wednesday’s last check, the price had fallen 0.09%.
Alphabet shares dropped over 6% following the announcement of weaker-than expected earnings and revenue in the third quarter. It earned $1.06 per share, as opposed to $1.25 that Wall Street was expecting.
Google’s parent company saw a 6% quarterly revenue growth, compared to over 41% in that same period last year. YouTube, however, suffered its first ever fall in advertising revenue. The revenue generated by the video-streaming site was below $7.1 billion, which is down from $7.2 million a year earlier.
According to strategists, YouTube’s failure to reach its goals could indicate a problem for other tech giants’ prospects of digital advertising revenue.
Evelyn Mitchell, principal analyst of the research firm Insider Intelligence (owned by Insider’s parent company), stated that “when Google stumbles it’s an awful sign for digital advertisement at large.”
Other mega-cap tech stocks also fell on digital ad slowdown concerns before the opening bell. Meta Platforms AmazonBoth fell by around 3.5%.
MicrosoftNasdaq shares fell 5.6% Wednesday, dragging it lower. It met its third-quarter earnings targets and revenue targets. However, it warned that there could be slowdowns at its cloud computing business because of a slumping economy.
Meta is expected to publish its third-quarter earnings reports after Wednesday’s closing call. Tech giants like Google and Microsoft will also be publishing their reports. AppleAmazon and Amazon will publish their reports on Thursday.
