Alphabet's Q4 Earnings Disappointment Sparks Stock Slide

Alphabet reported fourth-quarter earnings, beating estimates with revenues of $86.31 billion, but its ad revenues fell short, causing its shares to drop 5.78% after hours. This has significant implications for ETFs heavily invested in Alphabet, such as iShares Global Comm Services ETF, Communication Services Select Sector SPDR Fund, Fidelity MSCI Communication Services Index ETF, and Vanguard Communication Services ETF, all of which have double-digit exposure to Alphabet. The disappointing ad revenues reflect rising competition for ad budgets from alternative online platforms, and the uncertainty regarding the pace of interest rate cuts by global central banks.