On Wednesday, Alphabet's share price dipped more than 9% on its worst day months after it released earnings that missed targets in the previous quarter.

It reports its weakest growth since 2013, except when it only had two periods of this, the other being during the coronavirus pandemic. In addition, the company's revenue growth experienced a decline from 41% to 6% a year ago as it struggled to navigate an ongoing downward trend in its digital advertising spending.

Analysts expected YouTube ad revenue to increase by about 3% to $7.21 billion from $7.07 billion a year ago, but it decreased by about 2% to $7.07 billion. Overall advertising revenue for the quarter rose slightly from the prior year to $54.48 billion.

Analysts at Bernstein maintained their overweight rating on Alphabet shares but pointed out that as Google's ad revenues slow down, the company has become warier in the last six months.

"Google is an ad business first, and digital ads is no longer a safe place to hide," they said Wednesday.

Raymond James analysts maintain their outperform rating with a point of view focused on a long-term trajectory in ad revenue, Google Cloud, and some adjustments to Alphabet headcount.

The analysts highlighted a plan by Alphabet to reduce headcount growth; this makes them optimistic that the margins can improve before the close of 2023.

Analysts at Needham said Alphabet's report is likely bad news for Meta as it begins Big Tech earnings week on an ominous note.

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