Alphabet (Goog, Googl) is ready to publicize its results of the fourth quarter after the closure of the market this Tuesday. This marks the beginning of the second week of profit results for American technological giants, while Wall Street hopes to see how the searches giant will respond to the threat of the models of artificial intelligence of the Chinese Startup Depseek.
The Google parent company is expected to also offer updates on its efforts to turn its massive investments into new sources of income and the general performance of the broad digital advertising market.
Waiting, Google shares rise about 1% before the opening of the market. However, investors have in the radar that China will begin an antitrust investigation Against the American company, which could have an impact on its finances and therefore on the price of its action.
Goal (goal), rival in advertising, reported profits last week, easily exceeding Wall Street expectations both in income and profits, but refused to provide a guide for the whole year. Like Alphabet, goal is investing strongly in its AI efforts while seeking to use technology to improve ads sales and user participation.
Google, and US technology companies in general, are still surprised by the overwhelming success of Deepseek V3 and R1 models. Supposedly developed by a fraction of the GEMINI cost of Google and Chatgpt of OpenAi, Depseek’s efficiency raises doubts about whether Silicon Valley is encompassing in the Hardware of AI.
The expected numbers
Alphabet is expected to report earnings per share of US $ 2,13 with revenues of $ S96.6 billion for the quarter, compared to $ S1.64 per share and $ S86.3 billion of the same period last year.
Advertising income is expected to reach $ S71.7 billion, compared to $ 65,5 billion last year, while Google Cloud revenues will reach $ 12.1 billion compared to $ S9 , 1 billion that the company saw last year.
Cloud growth is an important metric for
since it seeks to gain market share in front of rivals such as Amazon (AMZN) and Microsoft (MSFT). Microsoft cloud revenues rose 21% year -on -year during their last quarter, reaching US $ 40 billion. However, this was below the expectations of Wall Street Deu $ S41.1 billion, which caused the actions of Windows creator to fall.
“We believe that cloud growth should maintain a growth rate between 20 and 30% to 2026, driven by a greater contribution of artificial intelligence workloads as the capacity expands, as well as the launch De Gemini 2.0 in December, “said Angelo Zino, a actions of Cfra Research, in a note.
Google, like the finish line, is waiting for the result of Trump’s support for Tiktok, the application of short videos that would be supposed to close its operations in the US. Uu. Last month, but that has continued working while the president is looking for A solution to avoid total prohibition.
Google also continues to face regulatory risks. At the end of last year, Google appealed a sentence after the courts concluded that the company abused its monopolistic power over the searches business. A possible solution, suggested by government lawyers, is the dissolution of the company. However, the market has set aside the immediate concerns of a drastic restructuring.
The CEO Pichai sundar He was one of the members of the technological elite who attended the inauguration of Trump, in what many political and market observers see as a reset at the industrial level towards a more accommodating relationship with the president. The impact that Trump’s policies will have on Silicon Valley and what their most friendly business administration will mean for Google’s legal problems will also be in the minds of investors when financial results are approaching.
Alphabet’s shares have risen 41% in the last 12 months, surpassing those of Amazon, which rose 39%, and easily surpassing those of Microsoft, which only increased 2% in the same period.
Source: Ambito
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