Google-parent Alphabet misses estimates for quarterly revenue

© Reuters. FILE PHOTO: The Google logo is seen on on the company’s European headquarters in Dublin, Ireland, February 27, 2021. REUTERS/Clodagh Kilcoyne/File Photo

(Reuters) -Google-parent Alphabet (NASDAQ:) Inc missed market estimates for quarterly revenue on Tuesday as advertisers cut back on their spending in the face of an economic slowdown.

The market for online advertising has been strained globally on fears that consumers may curb their spending as they grapple with a spike in interest rates and runaway inflation, prompting companies such as Snap Inc (NYSE:) to issue a revenue growth warning.

Shares in Alphabet fell 2.5% in trading after the bell.

Google’s advertising revenue was $54.48 billion in the third quarter, compared with $53.13 billion last year.

The company said total revenue was $69.09 billion in the quarter ended Sept. 30, compared with $65.12 billion a year earlier.

Analysts on average expected revenue to be $70.58 billion, according to Refinitiv data.

Net income fell to $13.91 billion, or $1.06 per share, from $18.94 billion, or $1.40 per share, a year earlier.