Google parent Alphabet Inc.’s stock was tumbling late Tuesday, as a rebound in digital advertising fell short of analysts’ lofty expectations. The search-engine powerhouse reported a jump in fourth-quarter sales, chiefly through advertising, but Alphabet’s shares
GOOGL,
-1.34%
GOOG,
-1.16%
fell 6.5% in after-hours trading.
Total revenue was $86.3 billion, up 13% from $76 billion a year ago. Sales minus total acquisition costs (TAC) came in at $72.3 billion, compared with $63.1 billion a year ago. Alphabet reported fourth-quarter net income of $20.7 billion, or $1.64 a share, compared with net income of $13.6 billion, or $1.05 a share, in the year-ago quarter. “We are pleased with the ongoing strength in Search and the growing contribution from YouTube and Cloud. Each of these is already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come,” Alphabet Chief Executive Sundar Pichai said in a statement announcing the results. Analysts surveyed by FactSet had expected on average net earnings of $1.59 a share on revenue of $85.3 billion and ex-TAC revenue of $71.2 billion. Google’s total advertising sales climbed 11% to $65.5 billion from $59 billion a year ago, falling just shy of analysts’ average expectations of $65.8 billion. YouTube ad sales rose 16% to $9.2 billion from $7.96 billion a year ago. Google Cloud rang up $9.2 billion in sales, up 26% from $7.3 billion. “Alphabet’s disappointing ad-revenue numbers suggest that corporations worldwide are still uncertain about the pace of interest-rate cuts from globa …
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GOOGL,
-1.34%
GOOG,
-1.16%
fell 6.5% in after-hours trading.
Total revenue was $86.3 billion, up 13% from $76 billion a year ago. Sales minus total acquisition costs (TAC) came in at $72.3 billion, compared with $63.1 billion a year ago. Alphabet reported fourth-quarter net income of $20.7 billion, or $1.64 a share, compared with net income of $13.6 billion, or $1.05 a share, in the year-ago quarter. “We are pleased with the ongoing strength in Search and the growing contribution from YouTube and Cloud. Each of these is already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come,” Alphabet Chief Executive Sundar Pichai said in a statement announcing the results. Analysts surveyed by FactSet had expected on average net earnings of $1.59 a share on revenue of $85.3 billion and ex-TAC revenue of $71.2 billion. Google’s total advertising sales climbed 11% to $65.5 billion from $59 billion a year ago, falling just shy of analysts’ average expectations of $65.8 billion. YouTube ad sales rose 16% to $9.2 billion from $7.96 billion a year ago. Google Cloud rang up $9.2 billion in sales, up 26% from $7.3 billion. “Alphabet’s disappointing ad-revenue numbers suggest that corporations worldwide are still uncertain about the pace of interest-rate cuts from globa …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]