Entertainment: weak PC market is adding Microsoft, Google reports less profit

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The analysts had expected more: the UkraineKlieg, a strong US dollar and low demand for computers make business difficult. Google also remained behind the expectations.

  Schwacher PC-Markt setzt Microsoft zu, Google meldet weniger Gewinn © Swayne B. Hall/ dpa

of the software group Microsoft has cut off worse than expected in the recent quarter despite significantly more sales. Corona-Lockdowns in China, burdens from the UkraineKlieg and the recently weaker PC market made it difficult for the shops, the group said on Tuesday after the US exchange conclusion. In the three months to the end of June, Microsoft earned $ 16.7 billion and thus two percent more than in the corresponding period of the previous year. The proceeds increased by twelve percent to $ 51.9 billion.

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Despite the clear business growth, analysts had expected better numbers. The stock initially reacted with price losses. The balance sheet also suffered significantly from the strong dollar, which reduces foreign income after conversion into US currency.

Without this exchange rate effect, the increase in sales would have been 16 percent after the company. Microsoft makes a significant part of his shops outside the US home market and had already steamed expectations of the quarterly figures in June.

The Google mother group Alphabet has completed the past quarter with a decline in profits. The surplus fell from $ 18.5 to $ 16 billion in the annual comparison, as the Internet giant announced on Tuesday after the US exchange conclusion. Meanwhile, sales increased by 13 percent to $ 69.7 billion (68.9 billion euros).

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The most important area of ​​the group - Google's advertising business - grew by 11.6 percent to $ 56.3 billion in the year. With the high inflation and the weakening economy, a downturn in online advertising spending is emerging, as companies pay more attention to the costs.

advertising on Google search brings a lot of money

at the video app Snapchat this was noticeable with the slowest growth rate so far. One question is whether the two giants Google and Facebook also feel the cooling - or their size and efficiency make them more attractive for advertising customers, especially in the current situation.

The business with advertising in the area of ​​Google's Internet search grew by 13.5 percent to around $ 40.7 billion. The proceeds on the Youtube video platform increased by 4.8 percent to a good $ 7.3 billion.

Although Google missed the expectations of the analysts, the stock temporarily increased by a good two percent.

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