Google parent Alphabet falls short of revenue estimates in earnings report

Alphabet Inc. reported quarterly revenue that missed analysts’ estimates, and new sales numbers on YouTube also disappointed Wall Street, sending the shares down more than 4% in extended trading.

Overall revenue, excluding payments to partners, was $37.6 billion in the fourth quarter, less than analysts’ projections of $38.4 billion, according to data compiled by Bloomberg. Advertising revenue in the quarter rose 17%, slower than the 20% year-over-year growth for the same quarter a year earlier.

YouTube ads generated sales of $15.1 billion in 2019, up 36% from the previous year, the company said in a statement. That excludes paid subscriptions, but it’s still well below the $22 billion that Morgan Stanley analysts estimated. Google has consistently said YouTube is a major source of growth, but it hadn’t broken out details until Monday.

The results suggest Google is struggling to maintain growth in the face of tougher competition. Amazon.com Inc. has become a digital ad rival, grabbing more valuable shopping-related searches. Revenue from the e-commerce giant’s “Other” division, which is mostly advertising, surged 41% in the key holiday quarter, from a year earlier, while Google’s Search & Other unit saw sales rise 17% in the same period.

Alphabet also reported cloud results for the first time. Sales, including a service that rents computing power and G Suite internet-based productivity software, totaled $2.6 billion, up 53% from a year earlier. Google is pouring money into that business to try to catch up with Amazon and Microsoft Corp. Under cloud boss Thomas Kurian, the internet giant is alsoUntil now, cloud and YouTube had been bundled together in an opaque Google metric called Other Revenue.

No surprise here, from my observations they keep passing search revenue streams to Amazon likely without even realizing the consequences for their ad ecosystem.

What they don’t have enough dirt on their customers to sell?

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Alphabet shows YouTube, Google Cloud sales amid disappointing results - Business InsiderAlphabet disclosed YouTube and Google Cloud revenue for the first time. But the new details couldn't hide a disappointing report.
Источник: BusinessInsider - 🏆 729. / 51 Прочитайте больше »

New Google service mails you 10 of your photos every month for $8 - Business InsiderFor $8 a month, a new Google service will automatically choose 10 of your photos and mail you hard copies Lol. Now they are telling you you cant even pick your own favorite pictures. Pay someone to do it for you. Hrm.... can‘t wait to get text screenshots and pictures of hw mailed to me
Источник: BusinessInsider - 🏆 729. / 51 Прочитайте больше »

How Google, Coca-Cola And Other American Companies Are Celebrating Black History Month 2020February is Black History Month, and much of corporate America is commemorating the occasion.
Источник: Forbes - 🏆 394. / 53 Прочитайте больше »