Alphabet 's latest quarterly results have analysts wary about the tech giant's near-term prospects. The company reported earnings per share of $1.06, less than the $1.25 expected per Refinitiv estimates. Revenue also came in short at $69.09 billion where Wall Street analysts anticipated $70.58 billion. Those weaker-than-expected results were driven by a slowdown in ad spending and a slip in revenue at YouTube, areas where analysts expected growth. The company also announced that it would slash headcount growth by half in the fourth quarter. Now, analysts see increased pressure for the company in the short-term. Citi analyst Ronald Josey cut his price target on the company to $120 from $140 to reflect slower revenue growth and margin pressures. "To be clear, while the macro environment is likely to continue impacting the broader online advertising environment, we believe Alphabet can refocus around its core priorities of Search and AI, YouTube, Hardware, and Cloud as the organization works on improving efficiency," Josey added. Analysts also cut expectations for next year's revenue after Alphabet's weaker than anticipated results. "All in, against the increasingly volatile global macro backdrop and high inflation that shows little sign of moderating, we adjust down our 4Q and FY23 revenue outlook by ~1% and ~2%, given uncertainties within the advertising industry, especially with YouTube's exposure to the brand ad market," wrote Deutsche Bank's Benjamin Black in a Wednesday note. A leaner Alphabet Alphabet announced that it would slow hiring in the coming quarter in a move to increase efficiency. "We believe GOOGL is likely very sensitive to suggesting anything publicly around workforce reductions, but we expect the pace of hiring to slow dramatically in 2023 & believe the company could take other steps to facilitate attrition and/or not backfill certain open roles," wrote JPMorgan analyst Doug Anmuth in a Wednesday note. "We currently project headcount to increase by 9k in 2023, or 5%, compared to 34k & 22% growth in 2022." Of course, though the company is taking proactive steps to become leaner, it will take time for results and may get worse before it gets better. "To be clear, it will take time for GOOGL to slow spending—it's just difficult to turn a big ship—but we believe that GOOGL will take appropriate steps to run a leaner business while still focusing on long-term growth," Anmuth said. Other analysts agree. "Mix shift away from high-margin businesses like Desktop/Mobile Search and Play Store revenue, and towards low/negative margin businesses like Subscription, Hardware and Other within Google Services is driving margins lower, and unfortunately it likely gets worse over the next few quarters before getting better," said Barclays analyst Ross Sandler in a Tuesday note while maintaining an overweight rating and $150 price target. Long-term story still positive Despite the potential short-term troubles for the stock, most analysts like the Google parent over the long haul. "While the macroeconomic conditions will likely impact the short-term narratives, we remain constructive on the opportunity for Search and YouTube in terms of compounded revenue growth – especially for the latter on the back of the opportunity for short form video and connected TV," wrote Goldman Sachs analyst Eric Sheridan in a Wednesday note. "Longer-term, we reiterate our positive outlook on GOOGL - we continue to see Alphabet as the leading collection of AI/machine learning-driven businesses in our coverage universe and view the company as uniquely positioned to capitalize on the blurring of the lines between advertising, commerce and media consumption," he added. The firm maintained its buy rating and price target of $135. Meanwhile, Barclays' Sandler noted that, "GOOG remains the best positioned company in digital advertising longer term, numbers should be close to reality after this reset." There are other positive signals for the company going forward. "What we liked most from 3Q22 was GOOGL's retail network integrations (ie, "buy now" buttons) across Search & YouTube," wrote Laura Martin of Needham in a Wednesday note. "We believe advertising, content and product sales are converging, and GOOGL appears to be ahead of this trend, which is promising." She maintained her buy rating and $160 price target. — CNBC's Michael Bloom contributed reporting.