Indeed, Netflix Inc NFLX is a subscription-model-revenue-generating giant producing conventional big-screen content.
So is YouTube-parent company Alphabet Inc GOOG GOOGL, which laps up billions in advertising revenue each quarter.
In fact, YouTube topped Netflix in terms of quarterly revenue. The Google-owned video platform delivering $7.96 billion in ad-revenue in the fourth quarter, while Netflix delivered $7.85 billion during the same time frame.
See Also: Apple Earnings 'Not A Slam Dunk' - 4 Analyst Takes On Tech Giant's Mixed Earnings Report
Recall the fourth quarter of 2021. At the time, YouTube delivered a whopping $8.6 billion in advertising revenue, while Netflix delivered $7.7 billion.
Blame for the reduction in Google’s ad-revenue on a year-over-year basis can be placed on the uncertain macroeconomic outlook, in which inflation remains high, but recession indicators like high unemployment rates are absent, prompting industry-wide ad budget cuts due to the uncertainty.
For the fourth quarter of 2022, Alphabet reported:
- Total revenue increased 1% year-over-year to $76.05 billion, which beat average analyst estimates of $75.69 billion, according to Benzinga Pro.
- Quarterly earnings of $1.05 per share, which missed average estimates of $1.18 per share.
- Cloud revenue hovering at around $7.3 billion, up from $5.5 billion year-over-year.
- Total ad revenue came in at $61.239 billion, up from $59.042 billion year-over-year.
- Google Search and other revenue came in at $42.6 billion, down from $43.3 billion year-over-year.
Price action: Shares of Google are trading 0.74% lower to $106.94, while shares of Netflix are trading 2.77% higher to $477.21, according to data from Benzinga Pro.
Read next: 'Risk Of Overheating': 4 Experts On Hot January Jobs Report, How The Fed Will React
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.