{"id":6694,"date":"2020-03-13T20:40:09","date_gmt":"2020-03-13T18:40:09","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=6694"},"modified":"2020-03-13T20:40:12","modified_gmt":"2020-03-13T18:40:12","slug":"facebook-and-google-are-more-exposed-to-the-coronavirus-than-you-think","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/facebook-and-google-are-more-exposed-to-the-coronavirus-than-you-think\/","title":{"rendered":"Facebook and Google Are More Exposed to the Coronavirus Than You Think"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\";https:\/\/g.foolcdn.com\/image\/?url=https%3A\/\/g.foolcdn.com\/editorial\/images\/563205\/gettyimages-1203187628.jpg&amp;w=2000&amp;op=resize\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Facebook and Google Are More Exposed to the Coronavirus Than You Think\" title=\"Facebook and Google Are More Exposed to the Coronavirus Than You Think\" \/><\/div>\n<h3 class=\"wp-block-heading\">Facebook and Google Are More Exposed to the Coronavirus Than You Think <\/h3>\n\n\n\n<p>Both tech giants could struggle with lower ad revenue as a global recession hits.<\/p>\n\n\n\n<p><strong>Facebook<\/strong>&nbsp;(<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/facebook\/fb\/\">NASDAQ:FB<\/a>)&nbsp;and&nbsp;<strong>Alphabet<\/strong>&#8216;s&nbsp;(<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/alphabet-c-shares\/goog\/\">NASDAQ:GOOG<\/a>)&nbsp;(<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/alphabet-a-shares\/googl\/\">NASDAQ:GOOGL<\/a>)&nbsp;Google might initially seem resistant to the novel&nbsp;<a href=\"https:\/\/www.fool.com\/coronavirus\/\">coronavirus pandemic<\/a>. After all, both companies generate most of their revenue from ads, aren&#8217;t exposed to supply chain disruptions, and could continue operating as&nbsp;their employees worked from home.<\/p>\n\n\n\n<p>However, the COVID-19 crisis could still exploit both companies&#8217; key weaknesses and cause significant slowdowns in their core ad businesses. Let&#8217;s examine the risks to see if <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/social-media\/\">Facebook <\/a>and Alphabet can withstand the incoming headwinds.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/g.foolcdn.com\/image\/?url=https%3A\/\/g.foolcdn.com\/editorial\/images\/563205\/gettyimages-1129173988.jpg&amp;w=2000&amp;op=resize\" alt=\"Facebook and Google Are More Exposed to the Coronavirus Than You Think \" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Facebook and Google are both exposed to China<\/h3>\n\n\n\n<p><a href=\"http:\/\/www.Facebook.com\">Facebook<\/a> was banned in\u00a0<a href=\"https:\/\/www.fool.com\/investing\/how-to-invest-in-china-stocks.aspx\">mainland China<\/a>\u00a0in 2009 after the Urumqi riots. <a href=\"http:\/\/www.Google.com\">Google<\/a> exited the country in 2010 after clashing with\u00a0the government over alleged cyberattacks. Yet both companies still generate billions of dollars in annual revenue from Chinese advertisers trying to reach overseas customers.<\/p>\n\n\n\n<p>Pivotal Research analyst Brian Weiser estimates <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/social-media\/\">Facebook<\/a> generated $5 billion to $7 billion in sales from Chinese advertisers in\u00a0fiscal 2018, which equaled roughly 10% of its total revenue.\u00a0<em>The Information<\/em>\u00a0estimated that <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/social-media\/\">Google<\/a> generated about $3 billion in ad revenue from the &#8220;Greater China&#8221; area (including Hong Kong, Macau, and Taiwan) in 2018, which would account for\u00a0about 2% of Alphabet&#8217;s revenue.<\/p>\n\n\n\n<p>Neither company offers clear disclosures regarding China. In their latest 10-K filings, Facebook admitted to\u00a0generating\u00a0&#8220;meaningful revenue from a limited number of resellers representing advertisers based in China,&#8221; while Alphabet didn&#8217;t mention the\u00a0country at all.<\/p>\n\n\n\n<p>China&#8217;s coronavirus infection rates are decelerating and many businesses are reopening. However, those companies will likely dial back their ad spending and focus on domestic ad platforms &#8212; including\u00a0<strong>Baidu<\/strong>,\u00a0<strong>Tencent<\/strong>&#8216;s WeChat,\u00a0<strong>Weibo<\/strong>, and\u00a0<strong>ByteDance<\/strong>&#8216;s Douyin (TikTok) or Toutiao &#8212; instead of Facebook and Google. That shift could throttle both companies&#8217; ad revenue this year.<\/p>\n\n\n\n<p>Read more:  <a href=\"https:\/\/www.fool.com\/investing\/2020\/03\/13\/facebook-google-more-exposed-to-coronavirus.aspx\">https:\/\/www.fool.com\/investing\/2020\/03\/13\/facebook-google-more-exposed-to-coronavirus.aspx<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Facebook and Google Are More Exposed to the Coronavirus Than You Think Both tech giants could struggle with lower ad revenue as a global recession hits. Facebook&nbsp;(NASDAQ:FB)&nbsp;and&nbsp;Alphabet&#8216;s&nbsp;(NASDAQ:GOOG)&nbsp;(NASDAQ:GOOGL)&nbsp;Google might initially seem resistant to the novel&nbsp;coronavirus pandemic. After all, both companies generate most of their revenue from ads, aren&#8217;t exposed to supply chain disruptions, and could continue [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":6697,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[3],"tags":[31,519,5,41,46,6,352,47],"class_list":["post-6694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-media","tag-business","tag-coronavirus","tag-facebook","tag-google","tag-management","tag-social-media","tag-social-media-marketing","tag-strategy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | Facebook and Google Are More Exposed to the Coronavirus Than You Think<\/title>\n<meta name=\"description\" content=\"Facebook and Google Are More Exposed to the Coronavirus Than You Think Facebook (NASDAQ:FB) and Alphabet&#039;s (NASDAQ:GOOG) (NASDAQ:GOOGL)\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dazzlepop.net\/site\/facebook-and-google-are-more-exposed-to-the-coronavirus-than-you-think\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dazzlepop | Facebook and Google Are More Exposed to the Coronavirus Than You Think\" \/>\n<meta property=\"og:description\" content=\"Facebook and Google Are More Exposed to the Coronavirus Than You Think Facebook (NASDAQ:FB) and Alphabet&#039;s (NASDAQ:GOOG) (NASDAQ:GOOGL)\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dazzlepop.net\/site\/facebook-and-google-are-more-exposed-to-the-coronavirus-than-you-think\/\" \/>\n<meta property=\"og:site_name\" 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