Alphabet disappoints expectations with the results of the fourth quarter, sliding the title of 7% In the Fetter Hours. The mother company of Google He reported a profit per share of $ 2.15 on revenues of 96.47 billion dollars, growing by 12%. The forecasts were 2.13 dollars per share of 96.56 billion in revenues. Net profit, on the other hand, increased by over 28%, reaching 26.54 billion dollars.
At the center the data under the expectations for the cloud
Google, which generates 84 of 98.5 billion of total revenues, saw an increase of 9.1% of its revenues, while Google Cloud scored an impressive +30.1%, going from 9.2 to 12 billion dollars; A 30% increase compared to the previous year, but lower than 12.2 billion expected.
Google Cloud is a crucial pillar in the Alphabet strategy for theTo generativea technology that has fueled a wave of investments in Silicon Valley and beyond. But this result aroused doubts about the ability to compete with rivals Amazon and Microsoft, which hold a higher market share.
“The fourth quarter was a strong quarter, led by our leadership in artificial intelligence and the momentum throughout the commercial sector. We are building, testing and launching products and models faster than never and obtaining significant results in terms of calculation efficiency, “he said Sunday PichaiCEO of Google. “Our Google Cloud portfolio based on artificial intelligence is recording a stronger question by customers, and YouTube continues to be the leader in streaming visualization time and podcasts”.
Massive investments for the IA
Pichai has announced that the company will increase capital expenses a 75 billion dollars For 2025, with an increase of almost 30% compared to 52.5 billion in 2024, mainly intended for the construction of new dataccers. This difference of over $ 22 billion for analysts could have been used to increase profits, but the company has chosen to invest it in the future of AI.
Despite the concerns, Alphabet managers defended the expense in AI during the conference call with analysts. Anat Ashkenazi, Alphabet’s Chief Financial Officer, said that the demand for AI tools for Google Cloud is overcoming the company’s ability to satisfy it, and that Alphabet is working to increase the ability and reduce the constraints.
Google’s enormous investments arouse doubts about economic returnabove all in light of the results of the Chinese Deepseek, which has achieved successes with lower resources, although contested by competitors such as Openii, accused of violating the intellectual property. Despite the concerns, Google’s management does not seem alarmed, attributing lower growth to estimates in the cloud to difficulties in supplies.
Decreasing title
Despite the two -digit growth of revenues and quarterly profits, the slowdown of the cloud and the enormous spending plans for the AI of Alphabet disturb the mood of investors in Wall Street. In the after Hours courses, the title of the Big Tech slipped by the 7.57%.
