(Bloomberg)-Google Parent Alphabet Inc. Revenue in the fourth quarter, which was absent from the expectations of analysts after the slowdown in its cloud business, which raised the concern of investors about the billions that the company spends on artificial intelligence.
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Alphabet said on Tuesday in a statement that the quarterly sales, with the exception of the batches of the partners, amounted to 81.6 billion dollars. Analysts expected $ 82.8 billion, according to the data that Bloomberg collected. The shares decreased more than 9 % in trading after hours.
Alphabet has announced $ 75 billion in 2025 capital expenses, which exceeds $ 57.9 billion expected by analysts. Sondar Pachay, CEO of Alphabet, said in the profit call with investors.
Google’s cloud unit is so far an indication of how artificial intelligence boom contributes to the company’s sales. Startups have become customers because they require more computing power to work, but not at the speed available. Sales of about $ 12 billion in the period ending December 31. Google Cloud is still tracking behind Amazon.com Inc. And Microsoft Corp. Bishi said that Google needs to continue to invest in the cloud to ensure that we can address the increase in customer request. “
The alphabet decreased to $ 187.12 in the extended trading, after closing it at $ 206.38. The shares have gained 9 % so far this year.
He urged the alphabet to prove that it maintains momentum in its business because it is largely spent on artificial intelligence, and with the intensification of competition in this market. Deepseek, the Chinese AI Running, was surprised last month when it said it had created a strong model for Amnesty International with the costs of our competitors. During the profit call, Pachay Dembeas described as a “massive team” but said that Google’s models also outperformed efficiency.
However, the Deepseek model is open for use, and it costs Google money, raising fears that its advantages in artificial intelligence and research may “may” use useful “this year.
Dan Morgan, the director of a senior portfolio in Swinovos Trust, added that the technology giant is now under increasing pressure to show how to translate its investments in artificial intelligence into real business gains.
Morgan said that the richest revenue from the artificial intelligence boom may not come to companies such as Google that drive forward models, but to companies specialized in chips. “You don’t want to be the people who are mining for gold,” he said. “You want to be the man who sells them choices.”
The alphabet construction of the plan for data and artificial Intelligence infrastructure has increased more than 6 % in Broadcom Inc. shares. In post -hours trading.
In a quarter, net income was $ 2.15 per share, compared to Wall Street’s estimate of $ 2.13 per share.
Unity results
Sales search ads brought 54 billion dollars, and a little over the analysts estimated. Google has always dominated the market, which is recently threatened by both artificial intelligence competitors and anti -monopoly challenges.
In August, an American judge spent that Google monopolized the search market through illegal deals. The Ministry of Justice and a group of states also claim that Google has violated the Anti -Monopolic Act of Technology used to buy and sell the website ads, and to harm publishers and advertisers in this process. The main procedures are expected in both cases in 2025.
YouTube video broadcasting site recorded $ 10.5 billion in revenue, which exceeds the estimates of analysts of $ 10.2 billion. In calling for profits with investors, the chief business official, Philip Schindler, said that early investment by YouTube in the podcast, which was common during the American elections, which led to an increase in advertising spending by both parties.
Other Bets in Alphabet, a group of future companies that include the Verily Life Science Unit, and Waymo Self -Driving, achieved $ 400 million of revenues, and lost estimates of $ 592 million. Alphabet Waymo, recently announced plans to test them in 10 new cities in 2025. But other units were pressured to launch as independent startup companies.
During a call on Tuesday, Pichai said that Waymo now has an average of 150,000 flights per week, and will soon go on her first international road in Tokyo. Pichai added that the company is working on a new version of the driving technology in Waymo, which will provide the costs of devices.
