Recession Fear: Google-Microsoft’s bad results! Pointing to the crisis on the global economy

US Economy In Recession: The poor results of Alphabet, the world’s leading tech company running the Google search engine, have raised concerns around the world. Google’s search advertising business has decreased, after which there has been a big decline in the shares of tech companies. After the disappointing results of Alphabet, with the decline in the pace of growth of the US economy, the fear of recession has become stronger. In the third quarter of 2022, the company’s revenue grew by only 6 percent and stood at $ 69.1 billion.

Most disappointing performance since 2013
Alphabet’s growth rate has grown at the slowest pace since 2013, excluding the period of the Corona epidemic. Experts were predicting a growth rate of 9 percent, which has increased at the rate of only 6 percent. Not only Alphabet but Microsoft has also raised the concerns of the tech sector. The company has said that the biggest slowdown can be seen in its cloud business. Earlier it was believed that the slowdown would not have an effect on cloud computing with the search business. But the decline in economic growth has started affecting these tech companies as well.

Bad results for US tech companies
Due to the disappointing results of Alphabet and Microsoft, the stock of both the companies saw a fall of 6 to 7 percent. After announcing the results, Alphabet CEO Sundar Pichai told investors that the advertising market is going through a tough phase at the moment. The revenue from YouTube’s advertising has also decreased by 2 percent and it has come to $ 7.1 billion. While analysts were predicting an increase of 4.4 percent. This is the biggest drop in the company’s ad sales since 2020.

US economy in crisis
Falling digital advertising is pointing to a crisis on the US economy. When inflation is at its peak, companies are shying away from spending on digital advertising. The focus of companies is now on reducing expenses. Google’s disappointing results have also raised concerns about the results of Facebook’s parent company Meta, which are to be announced today. Meta is also dependent on the revenue of digital advertising.

decrease in hiring
The poor results of these tech companies are going to affect the hiring. Alphabet has said that it is going to cut its hiring plan by more than 50 percent.

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