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Cost discipline is a must in a low-growth environment
Alphabet Inc.’s (NASDAQ:GOOG, NASDAQ:GOOGL) (“Google”) revenue growth is slowing and profits aren’t improving. In Q3 2022, Alphabet’s total revenue grew 6% YoY while total expenses (COGS+OPEX) increased 18% YoY. Google Services, the most lucrative segment representing 100% of Google’s operating income, saw its EBIT margin contract from 40% in 3Q21 to 32% in 3Q22. Per activist investor TCI Fund Management’s recent letter to CEO…
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