Google struggled to grow over the holidays despite ‘great momentum’ on YouTube and Pixels

Illustration of Google’s wordmark, written in red and pink on a dark blue background.
Illustration: The Verge

Alphabet CEO Sundar Pichai opened his company’s latest earnings announcement by boasting about “great momentum in Cloud, YouTube subscriptions, and our Pixel devices.” But read a little further, and the numbers show a company is struggling to grow: its revenue for the holiday quarter — the big one for many companies, especially those in the ad business — was essentially flat compared to 2021. It also had worse margins, meaning it was earning less on the money it did spend.

Alphabet, Google’s parent company, had an incredible run during the pandemic, posting incredible revenues in 2021 and achieving record profits several quarters in a row. But throughout 2022, its momentum has cooled; its revenue has grown at a slower pace, and its…

Continue reading…