Google Shares Go Down Despite Alphabet Reporting Positive Q4 Earnings

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Google shares slid by as much as 4 per cent during the after hour trading after the parent company, Alphabet, released the Q4 Earnings report. While Google did manage to beat the expected earnings mark, it failed to live up to the expectations for revenue generation from the Wall Street. The Refinitiv Consensus estimate for Google during the last quarter’s earning read USD 12.53, which the company comfortably breached and registered an earning of USD 15.35 per share. The revenue consensus for Google was expected to be USD 46.94 billion while the company only managed to accumulate USD 46.08 billion.

The earnings reports had a couple of more highlights with Google releasing revenue generated from Google Cloud and YouTube for the first time. During Q4, YouTube ads managed to generate a revenue of USD 4.72 billion to take its total revenue in 2019 to USD 15.15 billion. The earnings for YouTube excluded the revenue generated from YouTube’s non-ad business like subscriptions for YouTube TV, which were included under Google’s other revenues. Google Cloud showed some strong growth as well with the sector generating USD 8.92 billion in 2019 up from USD 5.84 billion in 2018. Google’s ad sector continued to be the top revenue generator for the company hitting USD 37.93 billion in Q4-2020.

Talking of Alphabet’s growth, the company last month became the fourth company from United States to cross the USD one trillion-mark. The number was breached when Wall Street’s valuation of Alphabet’s shares touched USD 1450.16 per share rounding the company’s total value to USD one trillion. The other three companies to have breached the mark are Google’s fellow tech competitors, Apple, Amazon, and Microsoft. The company’s initial public offering as Google was USD 84 per share back in 2004.

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