Alphabet, from Google, has a drop in ad revenue – 02/02/2023 – Market

Alphabet reported lower-than-expected quarterly revenue on Thursday as its Google parent’s digital ad business struggled in the face of an economic slowdown.

Google’s advertising revenue, which includes search and YouTube, fell from $61.2 billion to $59 billion as advertisers – the biggest contributors to Alphabet’s sales – slashed spending to deal with persistent inflation, high interest rates and fears of recession.

Alphabet’s net income fell to $13.6 billion ($1.05 per share) from $20.64 billion ($1.53 per share) a year earlier.

Revenue rose from $75.33 billion to $76.05 billion in one year. Analysts, however, expected revenue of US$ 76.53 billion, according to IBES data, from Refinitiv.

On the eve, fellow tech giant Meta impressed investors with its quarterly results. The company has pledged to cut costs and increase bids to better capitalize on ad dollars.