Google and Big Tech 2022 had a ‘nightmare’, but their problems won’t go away anytime soon.

Like most public technology companies, Google and its parent company Alphabet (NASDAQ: GOOG)NASDAQ:GOOGL) had a difficult 2022, fraught with regulatory issues, a weakening global economy, inflation and weak stock markets.

While Some hope that some of these issues will begin to decline in 2023, the investment company Monness, Crespi, Hardt believes that although the company “shows more strength than its peers” they can continue until next year.

Brian White, a buy-rated analyst at Alphabet ( GOOG ) ( GOOGL ), noted that advertising market and regulatory issues are likely to continue around the world for at least 2023, negatively impacting Alphabet ( GOOG ) ( GOOGL ). .

“In 2022, a combination of a weakened economy, some post-lockdown hiatuses and Apple’s privacy initiatives, particularly app tracking transparency, will have a negative impact on the digital advertising market,” White said in a note to clients as foreign exchange headwinds hit revenue growth, making it stronger year-over-year. Google’s ad revenue growth rate slowed to just 3 percent in the third quarter, down from 43 percent in the third quarter of 2021.

“For 2023, we expect further weakening of the economy to weigh on digital ad spending. [year-over-year] Comparisons become easier as the year progresses,” White added.

The analyst also said that regulatory issues could continue to hit the tech giant both at home and abroad.

In the US, White said, the big tech companies are in the “hot seat” as various laws are aimed at them and there have been constant “confrontational” congressional hearings. Despite all of this, legislation to further regulate these companies has been elusive.

On the other hand, the European Union has approved both the Digital Markets Act and the Digital Services Act, which may have a significant impact on technology companies financially.

Even with all of this, White Noted Alphabet (GOOG) (GOOGL) had some bright spots this year, including Google Cloud, which had the foresight to cut costs in a challenging economy, a long-term digital advertising trend, and a long-term end-user push to the cloud. .

Investment firm Baird recently selected Google ( GOOG ) ( GOOGL ) among the company’s top stock picks for the new year.