Hacker News new | ask | show | jobs
by gretch 1192 days ago
Because their income comes from advertising. Because the economy sucks in general, companies in all industries are being more careful with where they spend their marketing budget.

You can see this reflected in the revenue of other advertising companies as well such as google and meta.
2 comments
slg 1192 days ago
>Because the economy sucks in general

But to be clear the economy does not currently "suck in general" hence the confusion over blaming "the current macroeconomic environment".

These companies (including advertisers) are trying to get out in front of an economic downturn that hasn't yet materialized. And if it does materialize, all these companies will have a hand in causing it due to their reduced spending and layoffs which we know has potential to cause an economic slowdown.

link
Supermancho 1192 days ago
> But to be clear the economy does not currently "suck in general"

To be clear, what you say has little effect on reality. The decreased discretionary spending, housing market approaching a complete freeze, layoffs (those not being publicized in the news), inflation impacting every vertical, and the various shuttering businesses (survived covid, but died anyway), are what makes it "suck". This is not quantitative, but it is the sentiment.

link
slg 1192 days ago
>This is not quantitative, but it is the sentiment.

I'm looking forward to our first "just bad vibes" recession in which all the quantitative numbers behind what you describe are mostly fine, but we are just going to "sentiment" ourselves into a recession anyway.

link
Kye 1192 days ago
Belief in a coming downturn can cause one just as easily as some more tangible factor. Intro econ was a long time ago, but I think this is one of those It Is Known type things.
link
aaomidi 1192 days ago
https://www.macrotrends.net/stocks/charts/GOOG/alphabet/reve...

https://www.macrotrends.net/stocks/charts/META/meta-platform...

Is it?

link
gretch 1192 days ago
uh yeah it literally is? click into your own links?

Google has their 3rd worst quarter for YoY Quarterly growth out of the last 12 years.

Facebook has 3 consecutive quarters of negative yoy growth

link
TylerE 1192 days ago
So, Google still grew, and I’m not convinced the performance of Facebook says anything except that people are tieing of Facebook (and techbros like Zuckerberg)
link
aaomidi 1192 days ago
Right so you’re talking about the first and second derivative rather than the value.
link