Highlights

  • Google parent Alphabet's profits fall short at $14 bn

  • Alphabet shares slipped 5.6 percent to $98.60

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Google and Microsoft too hit by slowing economy?

Big tech firms are grappling with multiple challenges, from inflation to the war in Ukraine, and results in general for the quarter have been muted

Google and Microsoft too hit by slowing economy?

Sales at the tech giants Alphabet and Microsoft have slowed sharply, adding to fears of a downturn in the economy.

Alphabet, which owns Google and YouTube, said sales rose just 6% in the three months to September, to $69bn, as firms cut their advertising budgets. It marked the US firm's weakest quarterly growth in nearly a decade outside of the start of the pandemic.

Microsoft meanwhile said demand for its computers and other technology had weakened. Its sales rose by 11% to $50.1bn, marking its slowest revenue growth in five years.

Consumers and businesses around the world are cutting back as prices rise and interest rates go up, fuelling fears of a global recession.

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