Google and YouTube's parent company, Alphabet, reported that sales increased by just 6% to $69 billion in the three months that ended in September. Since the beginning of the epidemic, it represented the US company's worst quarterly growth in almost ten years. Microsoft claims that there is less demand for its technology, which includes PCs.

Since the beginning of the epidemic, it represented the US company's worst quarterly growth in almost ten years. Microsoft claims that there is less demand for its technology, which includes PCs. Concerns of a worldwide recession are growing as businesses and individuals throughout the world reduce spending in response to rising expenses and interest rates.

As a result of YouTube ad revenues declining for the first time since the business started publishing them to the public, Alphabet's profits dropped by almost 30% to $13.9 billion in the quarter.

For five consecutive quarters, the company's revenue growth has declined. The CEO of Alphabet, Sundar Pichai, said the business was 'sharpening' its focus and 'responding to the economic circumstances.'

When Google fails, 'it's a horrible portent for digital advertising at large,' says Evelyn Mitchell, chief analyst at Insider Intelligence, noting that social media platforms like Facebook or Snap have historically been more resilient to drops in ad spending than Google's main website.

According to the research, Google 'faces rough days' if the market situation deteriorates. Microsoft predicted that when business clients made savings this year, demand for its PC and cloud computing technology would decline even more.

The Xbox video game market has also seen a decline in sales. Due to consumers' and employees' increased reliance on technology as a result of the pandemic, large IT companies saw a surge in sales.

But given the current circumstances, the sector's prospects seem more gloomy. In recent months, Microsoft announced layoffs while Alphabet declared a reduction in employment. Other digital companies, like Netflix and Twitter, have chosen to reduce their workforces, while others, like social media platform Snap, have slowed the hiring process.