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Foreign exchange risk
16
MENTIONS
6
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6
PODCASTS
Search complete. 16 mentions across 6 episodes found for "Foreign exchange risk".
Oct 29, 2026
Melissa LeeHOST
There's also some color here on the call about the reason behind the search deterioration quarter on quarter.
Melissa LeeHOST
The business chief is saying that FX... was the biggest driver of surge deceleration from second quarter to third quarter, and that the impact of FX in the fourth quarter will be even greater.
Melissa LeeHOST
I don't remember hearing about FX.
Melissa LeeHOST
I never loved FX.
Melissa LeeHOST
And FX seems always to be like a cop-out kind of excuse.
Melissa LeeHOST
It's
Guy AdamiPANELIST
like a weather one where there are less days in the
Tim SeymourPANELIST
So is that translating into issues around the world? I don't think so.
Gene MunsterSOUNDBITE_SPEAKER
On the call, strong growth in AI mode queries affected search revenue.
Gene MunsterSOUNDBITE_SPEAKER
So on top of them saying that FX was an impact second quarter to third quarter and fourth quarter would be greater, they're saying that AI search queries had an impact on search revenue.
Gene MunsterSOUNDBITE_SPEAKER
So how do you- So that's not
speaker_2SOUNDBITE_SPEAKER
good.
Joseph CarlsonHOST
Now, the previous quarter was 16%.
Joseph CarlsonHOST
When you look at the change from growth rate from Q2 to Q3, there were a few drivers here.
Joseph CarlsonHOST
First, there was FX, foreign exchange.
Joseph CarlsonHOST
It was the single largest driver of search deceleration relative to Q2.
ColinHOST
Philip Schindler, which is chief business officer at Alphabet, named currency as the single biggest driver on the slowdown from the second market.
ColinHOST
They kept using FX as a issue on why we saw the slowdown.
ColinHOST
He then pointed that the EU is ending its de-minimum exemption.
ColinHOST
He also cited media and entertainment spending normalizing after the World Cup pulled budgets into June.
14 MINS LATER
ColinHOST
I would want to know the reason why it's selling off, right? What's the reasoning? It could just be that they realize that the power and energy sector, which is the gas turbines, just maybe that's old news now, right? We got it.
ColinHOST
We understand you got some gas turbines hooked up to these data centers, right? We understand that, but that's going to have to slow down at some point.
ColinHOST
You can't keep depending on that business forever, right? Otherwise, maybe they're going to use currency as well, FX.
ColinHOST
Maybe that's what they're going to claim.
Xavier BainesGUEST
We do see a significant compression in margins in the Middle East and Latin America as well.
Xavier BainesGUEST
But Latin America, I think, is more susceptible as well to FX swings and financing costs.
Xavier BainesGUEST
So that does weigh heavily at the bottom line, not just the operating line.
Xavier BainesGUEST
But yeah, globally, I think by 27, we'll still be short of 23, 24, 25 levels, but we will be, if the conflict does subdue in the short to medium term, recover to the slightly short of these levels.
Hamish HodderHOST
Let's get into the results from the second quarter.
Hamish HodderHOST
Revenue came in at just under eight billion dollars, which was up eight point six percent year over year, uh, and revenue was actually up thirteen percent if we exclude the FX impact, the foreign exchange impact, which was three hundred and thirty-nine million.
Hamish HodderHOST
Netflix is one of many multinational businesses that earn their revenue mostly in foreign currencies, then converting them into US dollars, and also are businesses where most of their expenses are in US dollars.
Hamish HodderHOST
Businesses in that situation right now are getting absolutely slammed by the fact that the US dollar is getting a lot stronger relative to almost every other currency around the world.
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