While the global economy is slowing down, Alphabet is still earns a lot of money
Reuters reports that despite slowing global economic growth, Alphabet, the parent company of Google, achieved excellent revenue growth in the most recent quarter due to continued increase in advertising income.
Alphabet’s second-quarter revenue was $69.69 billion, a 13 percent increase from the same time last year.
Investors have been preparing for the news for weeks, while advertising expenditure predictions have been tempered by experts. Concerns also escalated when social networks Snap and Twitter announced quarterly earnings that fell short of expectations. A lot of IT businesses have slowed or ceased hiring.
Rising salaries, together with rising gasoline and other commodity costs, have compelled some businesses to reduce their marketing expenditures this year. This includes advertisements on internet sites such as Google, which served as a crucial connection to customers during the recession. that of the epidemic.
Major US corporations, like Alphabet, are impacted by the strength of the dollar in their international operations.
Advertising accounted for 81 percent of Google’s quarterly income, with revenues of $56.29 billion, an increase of 12 percent year-over-year.
The entire profit for Alphabet was $16 billion.
Due to the crisis in Ukraine, Google has suspended sales in Russia, and YouTube’s ad income has changed as the popularity of its advertising alternatives has risen and fallen.
Google is predicted to retain its 29 percent market share inside the $602 billion worldwide Internet advertising sector, placing it at the top of the advertising market for the twelfth consecutive year.