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Last quarter Google and Meta ad revenue growth was roughly 2% and -4% respectively. If overall ad spend declines both of them will loose money. 2008/9 are not
by cheriot 4y ago
Last quarter Google and Meta ad revenue growth was roughly 2% and -4% respectively. If overall ad spend declines both of them will loose money.
2008/9 are not a good comparison because they were smaller companies and so much ad spend was moving from offline to online.
- Dylan16807 4y agoIf google lost 40% of their revenue it would only kick them back to the same numbers they had in 2019 and 2020. Maybe Meta would have to stop spending a fortune on VR if revenue declines, but it would take a lot to hurt them.
- cheriot 4y agoThey've increased headcount significantly since 2019 so I imagine layoffs would be in the picture. Agree they'd still be large businesses with growth prospects.
- Dylan16807 4y agoTo be clear, I mean that Alphabet revenue was about the same in both 2019 and 2020, so it's only growth since Q3 2020 that matters. Any idea what the new headcount is doing? I can think of very little change in their services over the last handful of years, but apparently they have doubled in size in the last five! At best I could point at waymo, but they've gained 2k compared to 70k. And they already gutted stadia but that was never very big.
- cheriot 4y agoMy impression is that a lot of it goes to GCP. Maybe YouTube getting a push in whatever initiative prompts them to overpay for NFL Sunday Ticket. I'd love to see a leaked doc from some mega cap tech outlining headcount per segment. I don't get it either.