Although the Google parent company Alphabet recorded increasing revenues in the second quarter of 2022, it earned less and thus remained in line with what analysts had forecast. Microsoft’s figures, on the other hand, are below expectations.
Google parent Alphabet is braving the global economic slowdown. In the second quarter, currency-adjusted revenues climbed 16 percent to almost $69.7 billion, as the US technology group announced. In contrast to Microsoft, Alphabet almost came close to the expectations of analysts.
The Windows group was not only affected by the lower demand for PCs around the world, but also by declining advertising budgets and the stronger dollar. Despite these adversities, Microsoft was also able to significantly increase its revenues.
Global search engine provider Google is benefiting from its dominance in online advertising. No company in the world sells so many ads on the Internet. Apparently, amid the economic downturn, advertisers continue to rely on the Guarantor to reach potential customers. After the disappointing quarterly results of Snap and Twitter, the results of the Mountain View group provided relief on the stock market. Alphabet shares are up 3.5 percent in after-hours trading, but have lost around 27 percent so far this year, more than the S
Only the quarterly figures from Facebook owner Meta, which are published on Wednesday after the market close, should cause a similar amount of excitement. Analysts fear the first drop in sales in the company’s history.
Alphabet’s CFO Ruth Porat called it a solid performance, and CEO Sundar Pichai attributed the growth to its search engine business as well as demand for its cloud offering. Advertising revenue accounted for 81 percent of sales in the past quarter. Operating profit increased slightly from April to June to $19.45 billion.
Microsoft was also able to increase its sales significantly in the past quarter, but was less convincing on the market. Revenues increased 16 percent at constant currency in the fourth fiscal quarter to $51.9 billion. Microsoft generates more than half of its revenue outside the US and is therefore more dependent on the development of the dollar. Only at the beginning of June did the group have something similar to Coca-Cola or Procter