Google's parent company Alphabet reported that the sales, which were slightly lower than Wall Street's expectations, were overwhelmed by the disappointing growth of the cloud computing.
The Silicon Valley giant reported $ 96.5 billion in the last quarter. This has increased by 12 % since the previous year, but is short of $ 96.6 billion expected by Wall Street analysts. The profit was $ 26.5 billion, with an analyst estimate of $ 26 billion, with an increase of 28 %.
Google's cloud division is an important factor in the company's movement to the generated artificial intelligence, a technology that created a spending boom since Silicon Valley. Google Cloud sales were $ 11969 billion in the fourth quarter, an increase of 30 % from the previous year, but not out of the $ 12.2 billion expected by analysts.
The result was questioned whether AI would prove the advantages of Google Cloud. This is still smaller than the competitive services from Amazon and Microsoft. Alphabet has invested a huge amount of American companies to strengthen the provision of AI, with the concerns that there are too many AI compared to Chinese counter parts.
Internet giants have announced that they will spend $ 75 billion in 2025 from $ 52.5 billion last year.
Alphabet shares have fallen about 7 % in after -market trading.
The company's executives said in a call with analysts after the results were announced. According to ALPHABET's highest finance officer Anat Ashkenazi, Google Cloud has more demand than the ability to provide customers with AI tools. She added that the company is working hard to make more capacity online and easier to constrain.
Ashkenage has also warned that the Google cloud division growth rate could be different in 2025. She anticipates that in the first quarter of the alphabet capital spending from $ 16 billion to $ 18 billion, the numbers every quarter will change in the year.
The Chinese emerging company Deepseek trembled to the US market last week after the popular chatbot app gained popularity. Deepseek states that it has trained a system for only $ 6 million, part of high -tech companies, such as Google. Alphabet stocks hit many other people, but later recovered. Since then, insiders in the high -tech industry have questioned some of DeepSeek's claims.
Nevertheless, this episode emphasized the important needs of Alphabet to correct AI to maintain digital services for consumers and companies who have never been more pampered with options. In addition, Google has added a weight to the question of whether to consider the so -called open source development used by Deepseek and other AI emerging companies.
Google's disappointing result suggests that Google's closed model strategy may be beginning to decline, as it is questioned by DeepSeek, “he said. The analyst, EVELYN MITCHELL-WOLF, is written in the memo.
Sundar Pichai, the highest executive officer of Alphabet, praised Deepseek for calls, but said that AI was another evidence that AI would present a big business opportunity in the future. He stated that alphabets are using cloud technology to provide hundreds of billions of consumers throughout the product and companies.
Since Openai's ChatGpt swept the world in 2022, Google's search engines, which are considered vulnerable to changing the AI trends, have so far strong. It was the world's most popular search product, and in the fourth quarter made $ 54 billion. The analyst was expecting $ 53.4 billion.
Alphabet is still investing in AI, and has been working to reduce other costs, including reductions in labor. Last week, the company stated that it provided voluntary acquisitions to employees in the platform and device department in charge of the Chrome Web browser and Pixel smartphone. According to an email viewed by New York Times, the company has reduced the role of Youtube almost 20 this week.
The advertising sales on YouTube rose $ 10.5 billion, up 14 %, more than $ 10.2 billion, for analysts.
