Stock Spotlight: Alphabet searches for tailwinds to overcome slumped ads revenue

'Enormous amount of financial firepower'

The investment case for Alphabet remains intact despite a global economic slowdown and weaker digital advertising landscape taking a toll on Q3 revenues, analysts told Investment Week.

The largest seller of digital advertising in the US reported last Tuesday (25 October) that Q3 revenues grew 6% to $61.1bn.  This was the weakest pace of growth since 2013, with the exception of a brief contraction at the beginning of the Covid-19 pandemic, and it was below analysts' projections for a 9% gain, according to Refinitiv. The results sparked a sell-off in the company's shares, closing down more than 9% on Wednesday (26 October), according to Morningstar data. This was the worst day for Alphabet's shares since March 2020.  Big tech regulatory crackdown: How much of a thr...