https://www.wsj.com/articles/googles-bottom-line-is-now-top-of-mind-11666739186
Google's Bottom Line Is Now Top of Mind
Core search business feels weight of advertising slowdown while hiring growth hasn't abated
As markets react to inflation and high interest rates, technology stocks are having their worst start to a year on record. WSJ's Hardika Singh explains why the sector — from tech giants to small startups — is getting hit so hard. Illustration: Jacob Reynolds
By Dan Gallagher
Oct. 25, 2022 7:06 pm ET
Google's no stranger to spending, but the company picked a bad time to stop watching its bills.
Third-quarter results Tuesday afternoon from parent company Alphabet Inc. finally showed the weight of the sharp global downturn in online advertising. Total ad revenue rose only 3% year-over-year to about $54.5 billion, while ad revenue from the company's YouTube unit fell for the first time ever—slipping 2% year-over-year to about $7.1 billion. Both also missed Wall Street's projections. The search ad segment that has been an area of strength for the company during an otherwise tough year for its rivals also grew revenue just 4% year-over-year after averaging 29% growth over the preceding four quarters.