$Alphabet(GOOGL)$ Google's management team is likely to be under some pressure now to trim costs, especially since the broader tech industry is reducing headcount and capex. If this happens, Google will likely follow Meta and see an uptick in the stock price.
There is this seeking alpha article that is really good. It paints a hypothetical scenario - a what-if - Google's "Other Bets" division didn't exist and how it will impact its bottom line. From 2017-2021, "Other Bets" generated revenue of $3 bn but incurred costs of $20 bn. In 2022, sales are expected to come in at $1 bn, but costs are projected at $6 bn. Further, "Other Bets" account for less than 0.5% of Google's revenues but easily dilutes the company's operating margin by 2-3 %-points every year. Against the weaker macro environment, coupled with activist calls from funds (TCI) to cut spending in a bid to remain competitive against other tech firms, I think it is likely Google will announce some measures in the coming months. These should be helpful for the stock price.
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