After gigantic work, announcements and publication of financial indicators were reduced.
Alphabet (Google, YouTube and consort) reports a slight drop in turnover to $76 billion in the fourth quarter of 2022. His net income is $13.6 billion instead of $20.6 billion last year. “It is clear that after a period of significant acceleration in digital spending during the pandemic, the macroeconomic climate has become more difficult,” acknowledges Sundar Pichai, CEO of Google.
As a result, the group’s ad revenue fell for the year, falling in both Google search (-3.6%) and YouTube (-7.8%). YouTube faces competition from Netflix on the SVOD side, as well as TikTok on the short formats. In terms of search and monetization of user data, Google, like Facebook, is suffering from the implementation of Apple ATT.
Google Cloud is treading water
Even the activity of Google Cloud is marking time (revenue of 7.3 billion dollars), the result is below analysts’ expectations.
Ten days ago, along with Amazon, Meta and Microsoft, Alphabet announced the loss of 12,000 jobs, or just over 6% of its workforce. And as of August last year, GAFAM has reduced the number of recruiting wings.
Snap (Snapchat) and Meta (Facebook, Instagram) are also anxiously approaching 2023. Of course, the user base of their products is still growing. Snapchat has 17% more daily users than last year.
But profits are falling. Snap reports a net loss of $288 million compared to a profit of $23 million a year ago. The Meta’s profit has halved in the last quarter.
And last year, the company’s advertising revenue fell for the first time since its IPO (by 1%) in 2012. And Mark Zuckerberg has promised that 2023 will be “the year of efficiency” by streamlining managerial jobs.
Even Apple is reporting earnings below expectations for the first time since 2016.
Apple’s sales fell 5% to $117.2 billion and declined in all regions of the world in the latest quarter. However, services remain a reliable lifeline for the company while devices absorb water. Apple CEO Tim Cook attributes these difficulties to manufacturing problems in China and believes the hurdle has now been overcome thanks to the Beijing authorities ending the zero covid policy.
Amazon, for its part, expects its turnover to increase by 9% in the fourth quarter of 2022 as inflation puts pressure on consumer spending. Growth is much weaker than the 22% in 2021. The e-commerce giant is forecasting a 9% increase in its turnover to $149.2 billion in the fourth quarter of 2022 as inflation puts pressure on consumer spending.