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Even tech behemoth Google is facing pressure from decreased advertiser spend ahead of tough economic conditions.
Google parent Alphabet reported a net profit of $13.9 billion in the third quarter, down 27% from a year earlier, while revenue climbed 6% to $69.1 billion, lower than analysts’ estimates of $70.9 billion.
“This disappointing quarter for Google signifies hard times ahead if market conditions continue to deteriorate,” said Evelyn Mitchell, principal analyst at Insider Intelligence.
Aside from advertisers reducing spend, the sluggish profits in a consecutive quarter are due to increasing its workforce as well as investments into its Cloud computing business and lower-margin lines like hardware.