Google’s shares sink almost 8% after disappointing the market with their balance

Google’s shares sink almost 8% after disappointing the market with their balance

Google’s parent companyAlphabet (Goog, Googl), presented on Tuesday its results of the fourth quarter after the closure of the market, exceeding expectations in profits per share and aligning with income projections.

However, the company did not reach expectations in its key computing segment In the cloud. In addition, he announced a strong increase in its capital expenditure for next year, going from US $ 57.9 billion to an estimated US $ 75,000 million.

Thus, Alphabet’s shares fall more than 7% in operations prior to the opening of the market this Wednesday after the publication of the report.

Alphabet’s announcement is produced in the middle of China’s decision to initiate an antimonopoly investigation against Google, a measure widely seen as a retaliation of Beijing before the 10% tariff imposed by former President Trump to the products made in China.

Alphabet’s report

Alphabet also faces the impact of Deepseek artificial intelligence models, a China -based company that shook the technology industry last week with the news that their models were cheaper to train and as efficient as those of the main companies in Silicon Valley.

His advertising rival, Meta (Meta), reported results last week, comfortably exceeding Wall Street in income and benefits, although he did not provide a financial projection for the whole year. Like Alphabet, goal is strongly investing in artificial intelligence to improve the sale of ads and interaction with users.

In the quarter, Alphabet reported earnings per share (EPS) of US $ 2,15 on revenues of US $ 96.4 billion. Analysts expected EPS of US $ 2,13 and revenues of US $ 96.6 billion.

Advertising income reached US $ 72.4 billion, exceeding US $ S71.7 billion expectations, while Google Cloud’s revenues were US $ 11.9 billion, below US $ 12.1 billion anticipated by Wall Street.

Cloud business growth is a key indicator for Alphabet in its attempt to gain market share against rivals such as Amazon (AMZN) and Microsoft (MSFT). Microsoft reported a 21% increase in the revenues of its cloud business in the last quarter, reaching US $ 40,000 million, although it failed Fall in your actions.

Google.jpg

Alphabet’s dome, Google matrix, became nervous after the negative results of the first semester: the group won 11% less than last year.

Google, like the finish line, is also waiting for the Trump administration decision on Tiktok, the application of short videos that had to close its operations in the US last month, but that continues to function while the former president seeks to avoid a total prohibition .

The company also continues to face regulatory risks. At the end of last year, Google appealed a judicial decision that determined that he had abused his monopoly power in the search business. Among the possible sanctions suggested by government lawyers is the possibility of company split, although the market has now minimized the probability of a drastic restructuring.

Alphabet’s actions have uploaded a 41% in the last 12 monthsexceeding Amazon’s performance, which advanced 39%, and leaving Microsoft behind, whose shares barely rose 2% in the same period.

Source: Ambito

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