Google parent Alphabet Inc. reported fourth-quarter results that narrowly missed analysts’ expectations, signaling lower demand for its search advertising during a slowing economy.
Sales, excluding partner payouts, were $63.1 billion in the fourth quarter, the company said Thursday in a statement. Analysts had projected $63.2 billion, according to data compiled by Bloomberg. Shares fell more than 6% in extended trading.
The lackluster results come as Google’s core advertising business is under threat on multiple fronts — and not just because of the slowed economy. The U.S. Department of Justice has called for a breakup of the search giant’s ad-technology business over alleged illegal monopolization of the market. And the company’s flagship search business, which drives most of its ad revenue, may be under threat from new entrants. Google last year declared a “code red” in response to Open AI Inc’s popular chatbot, ChatGPT.
