Here are analysts’ opinions on Alphabet’s ad results;
“We would like to point out that this is a fundamentally stronger quarter – Gross Revenue, Search, YouTube, and Cloud and Google Other Revenues all accelerated,” Mahaney writes. “That said, we believe the price actions following the print reflect the higher expectations that weren’t exceeded,” Evercore’s Mark Mahaney pointed out [1].
"Alphabet reported healthy advertising results, but not enough,” said Stifel analysts [2]
“In my general conversations with public market investors and sell-side analysts, few have a correct view of the advertising market,” Brian Wieser, Madison and Wall analyst said. “Many think that growth can continue at double-digit levels for the fastest-growing companies for much longer a period of time than is realistic to expect.”[2]
“Alphabet’s disappointing ad-revenue numbers suggest that corporations worldwide are still uncertain about the pace of interest-rate cuts from global central banks, thus keeping some powder dry while waiting for more clues before opening up their wallets,” said Thomas Monteiro, senior analyst at Investing.com [3].