Although the balance was good, advertising revenue results fell short of analyst estimates. All this, at a time when Google’s dominance as a search engine is threatened by artificial intelligence.
Alphabetthe parent company of Googlereported Tuesday that fourth-quarter revenue beat Wall Street expectations as advertising spending increased and demand for cloud services grew due to artificial intelligence tools.
- Google Cloud: US$9.19 billion compared to the expected US$8.94 billion.
- YouTube Ads: US$9.2 billion compared to the expected US$9.21 billion.
However, revenue in Alphabet’s main search business, driven by advertising, was $48.02 billion, slightly below analyst projections of $48.15 billion. so its shares fall more than 5.5% before the market opens on the New York Stock Exchange (NYSE).
These results come at a time of uncertainty for Google, that has dominated the internet for years. Its leadership position is threatened by new competition due to the rise of generative artificial intelligence, which has enabled companies such as Microsoft and OpenAI offer programs that answer user questions in a more developed way, as is the case with ChatGPT.
As revenues stabilize, the company has focused on reducing costss, and proof of this are the staff cuts, which have decreased from 190,000 people to 182,000, and there could even be new departures in the coming months.
Source: Ambito
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