After the giant job cut announcements, the publication of financial figures.
Alphabet (Google, YouTube and consort) announces a slight drop in turnover, to 76 billion dollars in the fourth quarter of 2022. Its net profit is 13.6 billion dollars, instead of 20.6 billion the year last. “It is clear that after a period of significant acceleration in digital spending during the pandemic, the macro-economic climate has become more complicated,” admits Sundar Pichai, the boss of Google.
As a result, the group’s advertising revenue fell over one year, falling both for Google search (-3.6%), and for YouTube (-7.8%). YouTube faces competition from Netflix on the SVOD side, but also from TikTok on short formats. On the search side and monetization of user data, Google is suffering – just like Facebook – from Apple’s implementation of ATT.
Google Cloud marks time
Even the Google Cloud activity is marking time (revenue of 7.3 billion dollars), with a result 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 last August, the GAFAM reduced the wings on the recruitment side.
Snap (Snapchat) and Meta (Facebook, Instagram) are also approaching 2023 with concern. Certainly, the user base of their products is still growing. Snapchat has 17% more daily users than last year.
But profits are plunging. Snap is posting a net loss of $288 million, down from a profit of 23 million a year ago. Meta’s profit for the last quarter is halved.
And last year, the company’s advertising revenue fell for the first time since its IPO (by 1%), in 2012. And Mark Zuckerberg to promise that 2023 will be “the year of efficiency” , by streamlining management positions.
Even Apple is posting earnings below expectations, a first since 2016.
Apple’s sales fell 5% to $117.2 billion and were down in all regions of the world in the latest quarter. However, services remain a watertight lifeline for the company, while devices are taking on water. Apple’s CEO, Tim Cook, attributes these difficulties to production problems in China, and believes that the obstacle has now been overcome thanks to the authorities in Beijing who have put an end to the “zero covid” policy.
Amazon, for its part, sees its turnover increase by 9% in the fourth quarter of 2022, in a context where inflation is weighing on consumer spending. Growth much weaker than the 22% of 2021. The e-commerce giant sees its turnover increase by 9%, to 149.2 billion dollars, in the fourth quarter of 2022, in a context where inflation weighs on consumer spending.