How resilient are Google’s shares to a business slowdown compared to other tech companies amid growing concerns about a US recession? This is an important query for investors interested in GOOGL stock.
Alphabet (GOOGL), the company that owns Google, posted disappointing fourth-quarter results.
With sluggish growth in Internet search advertising, YouTube commercials and cloud computing services, Google reported fourth-quarter earnings and revenue that fell short of Wall Street expectations.
The price of GOOGL will increase by almost 18% in 2023 despite growing difficulties. By making its AI tools available to developers, Google hopes to compete with Microsoft’s (MSFT) investment in artificial intelligence company OpenAI.
DoJ files antitrust charges against Google stocks
On January 24, the US Department of Justice filed an antitrust lawsuit against Google, raising the possibility that the search giant needed to sell part of its advertising business to appease authorities. The Justice Department says Google’s dominance in digital advertising hurts competition.
In less than two years, the Justice Department filed a second antitrust complaint against the internet giant. The Department of Justice filed an antitrust lawsuit against Google in October 2020, claiming that it had a monopoly on Internet search and search-related advertising. A trial on the matter is scheduled for September.
Google’s actions avoided three fines totaling $9.3 billion imposed by the European Union on antitrust grounds because of its huge cash reserves.
On January 20, Google announced it would cut 12,000 jobs, or about 6% of its global workforce, contributing to a growing trend of layoffs at US tech companies. The company’s hiring spree was followed by layoffs.
TikTok’s expansion is putting pressure on YouTube, which wants to monetize its short video format.
KeyBanc Capital Markets analyst Justin Patterson wrote in a note to clients: “With macroeconomic headwinds becoming more pronounced, we believe the argument turns to how quickly management can rein in spending to prevent margins from falling to current levels. from 2019-2020”.
In 2021, GOOGL shares increased by 65%. However, Google’s stock price is down 39% in 2022. In the past year, the S&P 500 is down more than 19%.
After Alphabet, Google’s parent company, announced a 20-for-1 stock split, the internet giant. However, in the longer term, a GOOGL stock split could allow the tech giant to join the Dow Jones Industrial Average. Retail investors may be more attracted to Google stock.
Increase advertising sales through e-commerce
Alphabet wants to expand its advertising business by focusing on Internet search for online retailers. It also aims to weaken Amazon.com’s (AMZN) monopoly on product searches.
Analysts expect Google’s Internet search business to outperform other forms of advertising, such as social media.
The Performance Max advertising platform is launched by Google. Automate shopping across multiple platforms including YouTube, Internet Search, View, Gmail, and Maps. Advertisers can manage campaigns across their highest performing Google Ads inventory. Tools help advertisers convert more consumers
The big picture: As the coronavirus emergency recedes into 2023, year-over-year growth comparisons for Google stocks will become increasingly difficult.
Google Stock: The AI Experience
Although the internet search giant changed its name to Alphabet Holdings in 2015, most investors still refer to the company as Google. The reorganization spun off Google’s core online advertising businesses from so-called moonshots, including its Verily Life Sciences division and autonomous vehicles.
Google split its quantum computing technology division into a new company in March 2022.
Google Cloud Platform, YouTube and consumer hardware elements are among Google’s AI strengths. related action