Alphabet Slides After Cloud Sales Fall Short of Expectations
(Bloomberg) – Google Parent Alphabet Inc. Posted in the fourth quarter income, which has missed the expectations of analysts as the growth of its cloud business slowed. The stock has decreased by more than 8%.
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Excluding sales of partners amounted to $ 81.6 billion, the alphabet announced a statement on Tuesday. Analysts predicted $ 82.8 billion according to Bloomberg data.
The company also plans $ 75 billion in Capital expenditures in 2025, exceeding $ 57.9 billion, analysts are expected to build data centers and infrastructure. This led to more than 6% stimulation of Broadcom Inc. Shares.
Investors called on the alphabet to show that it maintains momentum in his business, as it spends more AI, and as competition in that market. Google’s Cloud Unit used the AI ​​boom because the startups required more calculations for their work, but about $ 12 billion worth of estimates in the period. Google Cloud still holds trails with Amazon.com Inc. and Microsoft Corp.
The alphabet fell at $ 189.40, expanded after $ 206.38. This year, the shares scored 9%.
Investors will seek assurance that AI costs are not too big than deep depths of the Chinese AI, when the Silicon Valley surprised that it was part of its competitors.
In the quarter, net income was $ 2.15 per share compared to $ 2.13 of Wall Street.
The search advertisement brought $ 54 billion in sales, beating analysts. Google has long dominated the market, which is a new threat to both AI competitors and anti-monopoly challenges.
In August, the US judge decided that Google monopolized the search market through illegal transactions. The Department of Justice and a group of countries also claim that Google has violated antitrust law to buy and sell website ads in the process to damage publishers and advertisers. In both cases, the main proceedings are expected in 2025.
YouTube has reported $ 10.5 billion, exceeding analysts’ estimates of $ 10.2 billion. The chief businessman Philip Shindler has announced the early Youtube investments on the Podcasts, which drove the growth of advertising by both sides in the US election.
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