Published: Sat, February 03, 2018
Tech | By

Alphabet revenues jump 24% to United States dollars 32.32 bln in Q4

Alphabet revenues jump 24% to United States dollars 32.32 bln in Q4

Alphabet also reported that "other revenue" - a category that includes its cloud business, hardware sales and app store - increased almost 40 percent, to $4.7 billion. Expenses jumped 27 percent to $24.7 billion in the fourth quarter from the year-earlier period. It cut prices on other types of hardware in an attempt to get its media streaming and online search devices into the homes of people.

Google may have made its name as a search engine, but cloud services are quickly growing in importance for the $817 billion company.

Investments are paying off, Google Chief Executive Sundar Pichai said, noting that cloud computing is generating $1 billion in quarterly sales.

Concerning some analysts and investors is Google's TAC, or traffic acquisition costs.

Cloud revenue is still a small part of Alphabet's overall revenue. "Advertising revenue is still up significantly", Ivan Feinseth of Tigress Financial Partners said in an email. Analysts had expected EPS of $9.98 on revenue of $31.86 billion.

Shares of Alphabet were dropping 4 percent after the closing bell on Thursday after the parent of Google reported a quarterly loss due to a almost $10 billion one-time tax charge. That being said, Alphabet is going to be just fine under the new tax rules going forward: Without the one-time charge, the company's effective tax rate would have actually declined to 15%.

Apple posted almost 88.3 billion dollars in sales.

Indeed, there was plenty to happy about, as demand for expensive adverts on mobile apps kept Google's core ad business strong. "Becoming a more AI-focused company will help that proceed".

Parent company, Alphabet, attributed its Q4 US$3 billion loss to a "one time transition tax" on "accumulated foreign subsidiary earnings and deferred tax impacts" totaling US$9.9 billion. For that reason, the company lost slightly more than $3 billion in net income according to generally accepted accounting principles.

Despite the firm's best ever quarterly revenues, shares in Apple were shaky in after-hours trading.

The business had revenue of $25.87 billion for the quarter, compared to analyst estimates of $25.65 billion. research analysts anticipate that Alphabet will post 32.36 earnings per share for the current fiscal year.

Alphabet also announced board member and former Stanford University president John Hennessy would replace Eric Schmidt as chairman. Stuart Chaussee & Associates Inc. acquired a new position in shares of Alphabet during the fourth quarter valued at $123,000. That was (unsurprisingly) the biggest driver of the company's revenue growth, as it has been many times before.

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