October 26, 2022
Alphabet, Google’s parent company, and Microsoft have reported profits for the July-September period. Both tech giants made robust profits during the coronavirus pandemic, but now see their profits suffer as the economy slows.
Alphabet reported that third-quarter revenue rose 6% year-on-year to more than $69 billion, but net income fell 26% to less than $14 billion, and revenue rose only 6% to $69 billion in the three months to September as companies reduced their advertising budgets.
Alphabet’s third-quarter profit fell nearly 30% to $13.9 billion as YouTube ad revenue fell for the first time since the company began reporting publicly. The company’s sales growth has slowed for five consecutive quarters.
At the same time, Microsoft saw demand for its computers and other technologies decline, with revenue rising 11% to $50.1 billion, the slowest rate in five years. Worldwide, consumers and businesses are cutting back in the face of rising prices and interest rates, fueling fears of a global recession. However, net profit fell 14% to less than $18 billion.
The sources for this piece include an article in BBC.
