Google stock : Alphabet shares slide on disappointing Google ad revenue


Google stock

Google stock : Top Line Alphabet, Google’s parent company, reported the highest quarterly revenues and profits in its 26-year history on Tuesday, coinciding with a record rise in the search engine giant’s stock price. Google stock

Key facts
Alphabet’s $86.3 billion in fourth-quarter sales was the most explosive period in the company’s history, breaking the third-quarter record of $76.7 billion and surpassing analysts’ consensus forecast of $85.3 billion for the fourth quarter, according to FactSet. Google stock

Google stock :The search engine giant’s top line was similarly leading, with earnings per share of $1.64 the best ever, coming in well above Wall Street estimates of $1.59.

Alphabet shares surprisingly fell about 4% in after-hours trading, still near the stock’s all-time high of over $150 that was first achieved last week. Google stock

2024 was a banner year for Alphabet, with sales of $307 billion and net income of $74 billion the highest ever, representing growth of 9% and 23%, respectively, from 2023.

Here are the key numbers:

  • Earnings per share: $1.64 vs. $1.59 expected by LSEG, formerly known as Refinitiv.Revenue: $86.31 billion vs.
  • $85.33 billion expected by LSEG.
  • Google Cloud: $9.19 billion vs. $8.94 billion expected, according to StreetAccount.
  • YouTube ads: $9.2 billion vs. $9.21 billion expected, according to StreetAccount.
  • Traffic acquisition costs: $13.9 billion vs. $14.1 billion, according to StreetAccount.

Google stock

the shadow
More importantly, performance in Alphabet’s core search advertising unit proved strong, with the unit’s $48 billion in revenue hitting a record mark. This helps allay concerns over the past 15 months about Microsoft being able to poach Google users due to Microsoft search engine Bing’s integration of its AI-generated ChatGPT chatbot. Microsoft reported 8% year-over-year growth in its search engine and news advertising division in its own earnings report on Tuesday, much weaker than Google Search’s 13% year-over-year expansion (Google does not quantify revenue for its news business).

Google stock : Crucial quote
β€œIt’s all about AI in ’24” for Alphabet, according to Bank of America analysts led by Justin Post. It’s a “crucial year” for Alphabet after its 2023 “AI wake-up call,” analysts wrote in a note to clients, expressing optimism about Google’s offerings in this area, such as its integration into search and its answer to the broad OpenAI language. Gemini model.

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