Google stock falls when Q4 earnings meet estimates, revenue lights

Google parent Alphabet (Googl) Tuesday reported earnings in the fourth quarter, angular by consensus estimates while revenue came slightly under views. Google Stock tumbled, though revenue growth in the central Internet search advertising business topped views in the midst of artificial intelligence -driven competition.

Also cloud computing revenue growth missed estimates.

In the midst of the emergence of Chinese start -up Deepseek is huge increases in capital costs from tech companies under more control. Alphabet expected capital costs of $ 75 billion in 2025, which is approx. 43% from last year, over views. Wall Street had projected about $ 59 billion in 2025 capital costs.

“Unexpectedly, the company provided quantitative guidance for 2025 CAPEX at $ 75 billion, which was significantly ahead of the street for $ 58.7 billion and the primary reason for the share of the share after hours,” RBC Capital Analyst Brad Erickson said in a report. “AI expenses are the guilty here.”

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Google stock: Search advertising revenue

Reported after the market close to Tuesday, Google rose earnings for the quarter, which ended 31 December, 31% to 2.15 per year. Stock. The tech giant reports Google earnings under generally accepted accounting principles, also known as GAAP.

In the 4th quarter, Google’s gross income increased 12% to 96.46 billion in the middle of headwinds from exchange rates and a strong US dollar.

Analysts examined by the fact had projected EPS of $ 2.13 on a $ 96.7 billion revenue.

Google’s Q4 Internet -Search Advertising -also came at $ 54 billion, an increase of 12%against estimates of $ 53.3 billion.

In 2025, analysts predict Google -Search -Advertising growth of almost 10% to $ 216.5 billion. Startup Openais Chatgpt has won global share, albeit slowly.

Google Stock: Cloud Revenue Misses Estimates

Furthermore, Google said cloud-computing revenue rose 30% to $ 11.95 billion, missing estimates of $ 12.19 billion.

Meanwhile, YouTube advertisements rose 14% to $ 10.47 billion against estimates of $ 10.23 billion,

In the stock market today, Google Stock tumbled more than 6% to 193.20.

The alphabet typically does not provide specific quarterly or annual guidance. But Alphabet’s new CFO Anat Ashkenazi was expected to put more of his priorities on the Q4 earnings peel as Wall Street looks for more “operating efficiency.”

In addition, the alphabet repurchased $ 15.55 billion of Google storage in the 4th quarter.

Googl -Aktie Classification

On the way into the Google earnings report, the Alphabet share had received 9% by 2025.

Furthermore, alphabet stock has an IBD composite classification of 99 out of the best possible 99, according to IBD ACTIAL CHECK. IBD’s composite assessment is a mixture of important basic and technical measurements to help investors measure the strengths of a stock. The best growth stocks have a compound rating of 90 or better.

Google is among AI shares to look at.

Follow Reinhardt Krause on Twitter @reinhardtk_tech For updates on artificial intelligence, cyber security and cloud computing.

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