Google's profit fell 14% in the second quarter

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    Google's profit fell 14% in the second quarter

    Google it's not immune to economic headwinds.” Earlier this month, the company's CEO, Sundar Pichai, warned his employees that the turmoil would affect its business, and it has, its parent company, Alphabet, announced This Tuesday a net profit of 16,000 million dollars in the second quarter, which represents a fall of 14% in relation to the previous year, falling below what was forecast by analysts.

    The technological giant revenue of $69.7 billion, an increase of 13%. The results show that Google's search engine business, a market it dominates with an iron fist, resists the economic slowdown and the increase in inflation, some uncertainties that yes. They hit other company businesses affected by the decline in online advertising, such as Youtube.

    Ruth Porat, Alphabet's chief financial officer, has warned that the company's profits have been hurt by rising investment costs to build new data centers and hire more staff. This slowdown, according to the company, is also due to the comparison with the second quarter of 2021, when they grew as a sign of recovery after the impact of the coronavirus crisis.

    Advertising business

    However, sales of ads on Google's search engine grew by more than 13%, to 40.7 billion ads. dollars, an increase higher than expected by analysts.

    The technology sector is also increasing. being affected by some unflattering macroeconomic conditions marked by inflation and the slowdown in the global economy, accentuated by the war in Ukraine and the covid pandemic. All this raises fears of a recession.

    These problems influence the advertising budgets, key to Google's business. And is that 81% of their profits depend on ads. During the second quarter they accounted for about 40.7 billion dollars in revenue.

    Youtube, also owned by Alphabet, has noted this drop in advertising. Thus, its advertising revenue grew by 5% during the second quarter, which represents a setback compared to the 14% increase registered during the first three months of the year.

    Because of its On the other hand, Google's cloud computing services generated about $6.2 billion in revenue, though the division suffered from some of the biggest hits. losses of 858 million, something usual. Google continues to lag behind Amazon and Microsoft, leaders in that important market.

    The new data shows that the owner of Google now has 174,014 employees, 10,000 more than in April. However, these economic uncertainties have led the company to announce that it will slow down its operations. the hiring of personnel, the same course that other heavyweights in the sector have taken.

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