Google parent Alphabet Inc. reported revenue and earnings that fell short of analysts’ expectations, showing the company’s search advertising juggernaut was not immune to a slowdown in the digital ad market. The shares fell more than 6%.

Alphabet said third-quarter sales, excluding payments to distribution partners, was $57.27 billion, falling short of analysts’ average estimate of $58.18 billion, according to projections compiled by Bloomberg. The company reported net income of $1.06 per share. That compared with analyst expectations for $1.25 per share.

As spiraling inflation crimps growth in digital advertising, Google and rivals such as Meta Platforms Inc.’s Facebook and Snap Inc.’s Snapchat are fighting for what’s left. Last week, Snap reported its slowest quarterly sales growth ever, which sent Alphabet’s shares down. Google’s search business, which is more insulated from economic swings than social media ads, has begun to show signs of weakness, too.

While Google has taken steps to control costs during the economic downturn, it will take time for the company to see the benefits, said Tejas Dessai, a research analyst at Global X ETFs.

“It’s a big company—it will take some time to trim fat,” he said.

Shares fell as low as $97.46, after closing at $104.48 in New York. 

—Bloomberg News