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We recently published a list of 10 Advertising & Media Stocks That Could Tank If Recession Hits. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against other advertising & media stocks that could tank if recession hits.
When recession strikes, the advertising and media sectors are the first ones to see a noticeable impact. Companies tend to reduce their advertising budgets when the going gets tough. As a result, media companies that rely heavily on advertising spending fail to hit their revenue targets. So, if investors want to look at red flags for recession, advertising and media stocks offer good insights.
While media companies across the board feel the heat of reduced advertising budgets, some companies tend to fare better. These are mostly the ones that have diversified their income streams to reduce reliance on advertising.
In this post, we look at stocks that are likely to struggle if ad spending goes down. To come up with our list of top 10 advertising and media stocks that could tank if recession hits, we only looked at stocks that had a market cap of at least $5 billion.
A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities.
Alphabet Inc. (NASDAQ:GOOG)
Alphabet Inc. provides different platforms and products. The company operates through Google Cloud, Google Services, and Other Bets segments. It offers various products and services, including Google Drive, Search, ads, devices, YouTube, Google Maps, Android, and others. The company also offers internet and healthcare-related services.
Nielsen presented a report recently, a monthly snapshot of total broadcast, streaming consumption via TV, and cable. According to the report, YouTube was the leading media distributor in the US for March, accounting for 12% of overall TV viewing.
At the start of this month, GOOG entered into a new non-exclusive agreement with Samsung Electronics. This deal enables Samsung to use alternative search products with no exclusivity requirements.
The company’s stock has declined significantly, providing a potential buying opportunity. With the stock trading down 20% YTD, there is value. However, Apple has just announced an AI search offering. Google pays Apple approximately $20 billion per year to have its search engine as the default search engine in Apple devices. Once this relationship ends, Google will be dealt a big blow. The stock tanked 7.5% as this news came out, clearly reflecting investor concerns.
Overall, GOOG ranks 8th on our list of advertising & media stocks that could tank if recession hits. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.