Here’s what the numbers look like:
Revenue: Estimated $96.47 billion vs $965.6 billion
Earnings per share: 2.15 vs. $2.13 estimate
Google Cloud Revenue: $11.96 billion vs. $1219 billion estimate
YouTube ad revenue: $10.47 billion vs. $10.23 billion estimate
The company also forecasts $75 billion in capital expenditures in 2025, and is linked to data centers and infrastructure build-outs for artificial intelligence, well beyond the $57.9 billion analysts had expected. Masu. This has resulted in an increase in Broadcom Inc.’s shares by more than 6%.
Investors have urged the alphabet to spend more money on AI and show that it has maintained momentum across the business as competition in its markets grows. Google’s cloud unit benefited from the AI boom as startups require more computing power to work, but sales for the period ended December 31st missed estimates. Google Cloud still continues behind the sizes of Amazon.com Inc. and Microsoft Corp.
Investors are looking for a sense of security that AI spending is not excessive after Chinese AI startup Deepseek surprised Silicon Valley.
In the quarter, net income was $2.15 per share, compared to Wall Street’s estimate of $2.13 per share.
Search ads have generated $54 billion in sales, slightly beating analyst estimates. Google has long dominated the market. This is being put under new threats by both AI competitors and antitrust challenges.
In August, a US judge ruled that Google dominated the search market through illegal transactions. The Department of Justice and state groups also allege that Google is violating antitrust laws regarding technologies that are used to buy and sell website ads and harm publishers and advertisers. In both cases, important procedures are expected in 2025.
YouTube reported revenue of $10.5 billion, with analyst estimates exceeding $10.2 billion. In a call to earnings with investors, Chief Business Officer Philip Schindler is paying off for early YouTube investments on podcasts that have been popular during US elections and have driven both parties to increase advertising spending. He said.
Alphabet’s other bets are a futuristic collection of businesses that include Life Sciences Unity and autonomous car efforts Waymo, generating $400 million in revenue and lacking an estimate of $592 million. Alphabet is actively expanding Waymo, recently announced plans to test it in 10 new cities in 2025, but other units are under pressure to spin off as independent startups.
(The first two paragraphs have been slightly altered from the original Bloomberg story.)
