Google reported its fifth consecutive quarter of slowing sales growth, with its YouTube video platform posting a drop in advertising revenue for the first time since the company began reporting the unit’s performance.
The results show weakness in the economy spreading to some of its more resilient names, including many tech companies that saw their sales and stock prices rise during the pandemic. Microsoft Corp. MSFT 1.38%increase; green up pointing triangle on Tuesday reported its worst quarterly earnings in more than two years, and Texas Instruments Inc. TXN 0.32%increase; green up pointing triangle said it was seeing flagging demand in personal electronics and from some other industrial buyers.
The Google results point to continued fragility for the digital-advertising industry, which has been clobbered in recent months. Some of Google’s core properties, including YouTube and search, which have long been drivers of the company’s overall performance, showed surprising weakness.