Alphabet and Amazon report weak fourth quarter and all of 2022
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Alphabet’s fourth-quarter revenue grew by 1% to $76 billion. Net profit fell by 34% to $13.6 billion—the company’s profit has been declining for the fourth month in a row. Alphabet’s net profit for 2022 as a whole also decreased – by 21%, to $60 billion. Annual revenue increased by 10%, amounting to $282.6 billion. The company’s quarterly profit was below analysts’ expectations, who predicted $15.3 billion. Alphabet shares fell on Thursday after the end of trading by 5%. The decrease in profits is primarily due to a drop in online advertising revenues in the face of a negative macroeconomic situation.
The company’s Google ad revenue, Alphabet’s main source of revenue, fell 3.5% to $59 billion in the fourth quarter. YouTube video ad revenue also fell 7% to $8 billion. Amid declining profits and slowing growth revenue Alphabet a few weeks ago announced the reduction of 6% of employees – 12 thousand people.
The challenging macroeconomic environment is affecting other tech companies as well. Thursday also introduced Amazon reporting. The company ended 2022 with a net loss of $2.7 billion against a profit of $33.4 billion a year earlier. This is the first annual loss of Amazon since 2014, it turned out to be worse than analysts’ expectations. The loss is due, among other things, to a significant investment by the company in electric car maker Rivian, whose shares fell sharply last year after rising before that, where Amazon owns 20%. The company’s revenue for the year increased by 9.4%, to $514 billion. Quarterly revenue increased by 8.6%, to $149.2 billion, net income decreased by 98%, to $278 million. Amazon shares fell after the close of trading by 5% . In January, the company also announced that it would lay off 18,000 employees.
Earlier reports were submitted Apple And Meta (recognized as extremist and banned in the Russian Federation), their quarterly revenues and profits also decreased. At the same time, Meta’s results were better than analysts’ expectations, so that its shares – the only one of these high-tech giants – rose by 20% after the publication of financial statements.
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