Google Stock Price and the Recession
An economic downturn is one of the factors that can have a major impact on the U.S. stock market. Since Google is a technology company and has a large presence in the global market, it is important to analyze the impact of a recession on Google’s stock price.
Recession and Google Stock Price Correlation
When an economic downturn occurs, stock prices tend to decline because companies earn less money and consumers spend less. Google’s main source of revenue is from advertising, and if advertisers cut back on their advertising budgets as a result of a recession, Google’s advertising revenue could also be affected.
Impact of Google’s different business units
Google has many businesses beyond its search engine. It has several business segments, including cloud computing, online advertising, and mobile, which can be sensitive to economic downturns, especially cloud computing. If companies reduce investments in IT infrastructure, Google’s cloud computing business could be negatively impacted.
Google’s strategy for preparing for a downturn
Google is making a number of moves to prepare for a downturn.