Inflation Keeps Growing, Here's How Alphabet Plans to Tackle It

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), like several other technology companies, faces a bout of macroeconomic headwinds that are causing a slowdown in revenue growth. To prepare for leaner times, Alphabet announced it would be more prudent with its financial resources.

Indeed, Alphabet said it would slow hiring and pause investments in all but its core categories. Alphabet derives most of its revenue from advertisers who understandably will pull back on spending as macroeconomic uncertainty rises.

Interestingly, marketers spent $763 billion on advertising in 2021, 22.5% higher than in the prior year. The figures from 2022 have yet to be released, but all indications show that growth will be slower or perhaps in the negative numbers. The Russian invasion of Ukraine has left many Europeans worried about the fallout effects. As consumers save more to prepare for the worst-case scenario, businesses are reducing advertising until they know more about how customer spending will change.

Source Fool.com