Google earnings

2022 - 10 - 26

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Image courtesy of "Siliconrepublic.com"

Microsoft and Google earnings take a hit amid economic downturn (Siliconrepublic.com)

Microsoft was boosted by continued cloud growth, while Google missed revenue and earnings expectations for the third quarter in a row.

However, Pichai said on the company’s earnings call that headcount growth will be “significantly lower” this quarter. The global advertising crunch continues to impact YouTube, as its ad revenue dropped by 1.9pc to $7.07bn. Hood added that the company expects to pay $800m in extra energy costs this fiscal year. However, it was lower than the $70.58bn expected, according to Refinitiv estimates. Issues in advertising have been hitting many companies this year. The boost to cloud services also benefitted Xbox. However, the company’s net income decreased by 14pc to $17.6bn. Google Cloud exceeded expectations with revenue of $6.9bn this quarter, but its losses widened to $699m compared to $644m in the same quarter last year. This includes $20.3bn from its Intelligent Cloud division, which grew by 20pc. [third quarter in a row](https://www.siliconrepublic.com/business/microsoft-google-alphabet-earnings-advertising-cloud) that the company has missed expectations in terms of revenue and earnings per share. Revenue for Alphabet’s third quarter was $69.09bn, which is higher than the $65.1bn in the same quarter last year. [previous quarter](https://www.siliconrepublic.com/business/microsoft-google-alphabet-earnings-advertising-cloud), the software giant was boosted by its cloud business, where revenue was up 24pc to $25.7bn.

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Image courtesy of "Forbes"

Microsoft And Alphabet's $250 Billion Stock Plunge Fuels Fears Of ... (Forbes)

Shares of Microsoft and Alphabet extended losses Wednesday morning after the technology giants slashed earnings forecasts for the rest of this year as a ...

[hikes](https://www.forbes.com/sites/jonathanponciano/2022/09/21/fed-raises-rates-another-75-basis-points-pushing-borrowing-costs-to-highest-level-since-great-recession/) this summer pushed major indexes into bear market territory. "The moment the Fed decides to put out the fire [by pausing interest rate hikes], stocks and other risk assets are likely to rally sharply," says Morgan Stanley strategist Michael Wilson. As [signs](https://www.wsj.com/articles/fed-set-to-raise-rates-by-0-75-point-and-debate-size-of-future-hikes-11666356757) indicate the Federal Reserve may soon pause the hikes, which work to combat inflation by tempering consumer demand, the S&P 500 has rallied about 8% the past two weeks. Fellow cofounder [Sergey Brin](https://www.forbes.com/profile/sergey-brin/?listuri=rtb&sh=b91f2144b432) isn't far behind. Bank of America forecasts sentiment could get "incrementally more negative" as the season progresses. [Larry Page](https://www.forbes.com/profile/larry-page/?listuri=rtb&sh=693fefaf7893) is worth an estimated $84.2 billion Wednesday morning.

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Image courtesy of "Yahoo Finance"

Tech ETFs Sink on Microsoft, Google Earnings (Yahoo Finance)

Downtrodden big-tech earnings are spilling over into the exchange-traded fund industry, with declining revenues foreshadowing a bleak future for the sector.

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