ALBAWABA – Alphabet, the American multinational technology conglomerate and parent company of Google, reported massive losses of around $240 billion following its recent earnings announcement.
Alphabet shares records massive decline
Shares of Alphabet, Google's parent company, saw a significant decline of approximately 9% just hours after the company announced its fourth-quarter earnings and revenue report. Notably, the results revealed missed revenue expectations.
It is worth noting that the company plans to invest approximately $75 billion in capital expenditures in 2025, focusing on its artificial intelligence (AI) strategy. Cloud revenue for the fourth quarter was recorded at $11.96 billion, below Wall Street's expectation of $12.19 billion.
As for cloud revenue, the results were disappointing for investors, with the company reporting $11.96 billion for the quarter, below Wall Street’s expectation of $12.19 billion. (Shutterstock)
Notably, Alphabet's revenue grew 12% this year, compared to over 13% growth in the same quarter last year.
Google's ad revenue increased by 10.6%, down from 11% a year ago. Search revenue rose 12.5%, compared to 12.7% in the fourth quarter of last year.
YouTube ad revenue grew 13.8%, compared to 15.5% a year ago, and the company's services business grew 10.2%, down from 12.4% last year.
As for cloud revenue, the results were disappointing for investors, with the company reporting $11.96 billion for the quarter, below Wall Street’s expectation of $12.19 billion.
Following the recent earnings and revenue announcement, the company lost about 9% of its share value, amounting to approximately $240 billion.
