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While results from companies like Roku and Spotify hold interesting information about particular segments of the consumer tech market and the health of advertising demand more generally, the sheer extent of Big Tech’s reach means their results bring a sheaf of color to our understanding of the current tech and business worlds. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. What have the majors shown us this week? The most important trend we’ve gleaned from three of the American big five (we’ll hear from Amazon later today and Apple next week) is their very moderate pace of trailing growth. Missing Attachment We’ve spilled more ink than I want to recall covering investors’ new preference for more profitable growth instead of crazy, unprofitable growth. Mostly, we’ve discussed that in reference to startups, but in the case of these tech giants, things get a bit more nuanced. That said, it’s clear that trimming costs and investing in growth are efforts that make investors happy.

3%, 3%, 7%

Given that we often hear of startups bearing growth expectations in the triple-digits, it may be surprising to assume that roughly $4 trillion in market cap across three companies could be defended with revenue growth in the single-digits, but here we are. Alphabet’s 3% rise in revenue was driven by Google Cloud’s top line increasing to $7.5 billion from $5.8 billion a year earlier. Search grew by less than $1 billion to $40.4 billion, while Google Network and YouTube advertising incomes dipped.

What is this, revenue growth for ants? by Alex Wilhelm originally published on TechCrunch


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