Sundar Pichai, CEO of Google and Alphabet, attends the inauguration of a new hub in France dedicated to the artificial intelligence sector, at the Google France headquarters in Paris, France, on Feb. 15, 2024.
Gonzalo Fuentes | Reuters
Google parent company Alphabet shares fell as much as 8% in after-hours trading Tuesday after the company reported fourth-quarter results that missed on revenue expectations.
The company also announced that it plans to invest $75 billion in capital expenditures in 2025 as it continues to expand on its artificial intelligence strategy. Earnings per share beat analyst estimates by two cents.
Here are the numbers:
- Revenue: $96.47 billion vs. $96.56 billion expected by LSEG
- Earnings per share: $2.15 vs. $2.13 expected by LSEG
Here are other numbers Wall Street was watching:
- YouTube advertising revenue: $10.47 billion vs. $10.23 billion, according to StreetAccount
- Google Cloud revenue: $11.96 billion vs. $12.19 billion, according to StreetAccount
- Traffic acquisition costs (TAC): $14.89 billion vs. $15.01 billion, according to StreetAccount
Alphabet’s fourth-quarter net income increased to $26.54 billion, compared to $20.69 billion in the year-ago quarter.
The company also reported disappointing cloud revenue at $11.96 billion during the quarter, compared to $12.19 billion, expected by Wall Street. However, the unit’s revenue is still a 30% increase from the year prior.
This is breaking news. Please check back for updates.
