Alphabet falls after disappointing earnings that analysts say could signal bad news for Meta

Shares of Alphabet dipped arsenic overmuch arsenic 8% Wednesday morning, a time aft the institution released third-quarter net that missed connected the apical and bottommost lines.

Alphabet reported its weakest play for maturation since 2013 but for 1 different play aboriginal successful the pandemic. Revenue maturation slowed to 6% from 41% a twelvemonth earlier arsenic the institution contends with a continued downdraft successful online advertisement spending.

The institution reported wide advertizing gross of $54.48 cardinal during the quarter, up somewhat from the anterior year. Analysts were expecting an summation of astir 3% successful YouTube advertisement revenue, but it slid astir 2% to $7.07 cardinal from $7.21 cardinal a twelvemonth ago.

Analysts astatine Bernstein maintained their outperform standing connected Alphabet banal but said arsenic Google's advertisement revenues decelerate, the institution has go "increasingly uncomfortable" implicit the past six months.

"Google is an advertisement concern first, and integer ads is nary longer a harmless spot to hide," they said Wednesday.

Raymond James analysts besides maintained their outperform rating, citing expectations for semipermanent advertisement gross maturation and Google Cloud momentum. The analysts noted Alphabet's plans to dilatory headcount additions, truthful they "are optimistic that margins tin amended by aboriginal 2023."

Alphabet's study marks an ominous commencement to Big Tech net week for investors focused connected the integer advertisement market, and analysts astatine Needham said it is apt atrocious quality for Meta.

"GOOGL talked astir much hardware spending going forward. GOOGL and META are some spending much capX and op Ex connected hardware, which implies little [Return connected Invsted Capital] than successful the past erstwhile GOOGL was predominantly a bundle and advertizing biz," they wrote successful a Wednesday note.

Meta is scheduled to study net aft the doorbell Wednesday.

-- CNBC's Jennifer Elias and Michael Bloom contributed to this report.