Google’s parent Alphabet barely missed estimates for quarterly revenue, showing that its industry-leading Google search and advertising business may be able to withstand big countries potentially going into recession over the next year.Meanwhile, Microsoft missed estimates for quarterly revenue, hurt by a stronger dollar, slowing sales of PCs and lower advertisement spending. Its shares fell about 1 per cent in trading after the bell.
Rising wages as well as rising prices of fuel and other items have forced some ad buyers this year to pare marketing, including even ads on internet services such as Google that served as an essential link to consumers during pandemic lockdowns. But at the same time, Alphabet is moving forward with expanding its cloud computing footprint, building out new offices and bringing its Google Fiber internet service to new communities.
Separately, Microsoft missed estimates for quarterly revenue on Tuesday, hurt by a stronger dollar, slowing sales of PCs and lower advertisement spending. Microsoft’s Azure cloud service grew by 40 per cent, compared with analyst estimates of 43.1 per cent, according to Visible Alpha.