Alphabet shares with price losses: Declining advertising revenues are affecting Google's mother

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Google parent Alphabet net profit falls to $13 billion

Photo: MIKE BLAKE / REUTERS

Corporate reluctance to advertise online has caused Alphabet's profits to plummet.

Net earnings fell to $13.62 billion from $20.64 billion in the same period last year, the mother of search engine Google and video platform YouTube announced on Thursday.

At the same time, advertising revenue shrank to $59.04 billion from $61.24 billion.

Group sales increased minimally to 76.05 from 75.33 billion dollars.

However, analysts had hoped for $76.53 billion.

Like Amazon and Apple, Alphabet disappointed investors with its numbers.

Stock is under pressure

Alphabet shares then fell nearly 4 percent in US after-hours trading.

The recent hype surrounding the chatbot ChatGPT has put additional pressure on Alphabet, as investors assume that voice and text robots based on artificial intelligence could replace classic Google search in the medium term.

Competitors like Baidu also want to use such chatbots in the near future.

la/reuters