Alphabet Stock Declines After Poor Sales

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Alphabet Stock Declines After Poor Sales

Alphabet Inc. Stock Declines After Poor 4th Quarter Sales

Alphabet Inc. announced its profit & sales data for the 4th quarter, and it seems that the tech giant has fallen short of market expectations. One of the major reasons behind this decline in sales is less consumer spending.

At the peak of the pandemic, consumers were actually spending more than what's normal. But it seems that's no longer the case amid the difficult economic situation.

Alphabet Executives Announce Cuts On Spending

Executives at Alphabet have come up with a series of cuts on spending in the form of hiring, experimental projects, & even real estate costs. With these steps, Alphabet's executives are planning to reassure the company's investors.

After the results, Alphabet shares were down by 5% during the after-trading hours. And just last year, Alphabet lost 40% of its value due to a difficult economic situation.

It seems that the only solution company has right now is to invest and spend with great responsibility. And that's what the CEO of Alphabet has assured the investors. If we look around, we also see similar comments from Mark Zuckerberg, who is leading the Meta Platforms.

In other news, we saw Amazon, and Apple shares slide lower after a series of disappointing results. For Facebook, the recent results also wiped off any recent gains it had accumulated after news of cost-cutting measures.

According to Pichai, advertisers are now spending more modestly, which is dragging the results of Alphabet. Furthermore, foreign exchange rates have also affected the sales figure of Alphabet as well.

However, Pichai made it clear that the company's focus will now be on AI and their chatbot dubbed LaMDA. In fact, the chatbot will be made available in the next few weeks.

Earlier, we already saw how ChatGPT took the world by storm, and if Alphabet's LaMDA offers tough competition, it will also attract a lot of goodwill for the company.

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