Looking into the financial data, Alphabet's performance in the fourth quarter was impressive, achieving revenue of $96.469 billion, marking a 12% increase from $86.310 billion in the same quarter of the prior yearEven when adjusted for constant currency, the year-over-year growth remained at 12%. The net profit surged to $26.536 billion, a substantial 28% increase over the previous year's $20.687 billion, with earnings per share climbing from $1.64 to $2.15. Such performance data undoubtedly underscores Alphabet's robust capabilities in business expansion and profit enhancement.

In terms of stock performance, Alphabet’s Class A shares opened at $203.26 on Nasdaq on Tuesday, climbing by $5.15 to close at $206.38—a 2.56% increase, signaling a positive market response to the favorable data within its financial reportHowever, this upward trend did not last; due to disappointing totals in overall revenue and cloud business income that fell short of analyst expectations, the stock price took a nosedive in after-hours tradingBy 4:47 PM ET (5:47 AM Beijing time Wednesday), Alphabet's stock dropped sharply by $15.80 to $190.58, reflecting a 7.66% fallOver the past 52 weeks, the company's stock reached a peak of $207.05 and a low of $130.67, and this after-hours tumble ignited concerns among investors regarding its future direction.

Analyzing the performance highlights for the fourth quarter, different business segments displayed varied trends

Advertisements

Total revenues from Google’s advertising business stood at $72.461 billion, an 11% increase compared to $65.517 billion the previous yearThis segment continues to serve as Alphabet's primary revenue pillarWithin the advertising arena, Google Search and other revenues rose to $54.034 billion, showcasing a 13% uptick year-over-year, a testament to continuous optimization in search technology and stable growth in user search volumesYouTube’s advertising revenues also impressively climbed to $10.473 billion, representing a 14% increaseThis reflects the platform's strong allure and growth potential within the advertising marketplaceConversely, revenues from the Google advertising network decreased by 4% to $7.954 billion, potentially influenced by intensified market competition and shifts in advertising strategies.

Meanwhile, Alphabet's cloud business reported revenues of $11.955 billion, a robust 30% rise compared to the previous yearHowever, this growth fell short of Wall Street’s expectations of $12.1 billion, contributing to the after-hours stock declineDespite the significant growth attributed largely to enhancements in core cloud infrastructure and demand for AI-driven solutions, CEO Sundar Pichai indicated a stronger-than-ever customer demand for AI-powered Google Cloud offeringsStill, the fact that it did not meet market expectations raised alarms among investors.

In contrast, revenues from other innovative segments posted a dismal $400 million, down 39% from the previous year, indicating that these emerging services face considerable commercialization challenges and have a long road ahead to substantially contribute to the company's revenue.

When looking at the annual performance for fiscal year 2024, Alphabet achieved steady growth, recording total revenues of $350.018 billion—a 14% increase from $307.394 billion in fiscal 2023, with a constant currency-adjusted growth of 15%. Net profit also soared to $100.118 billion, a remarkable 36% rise from the previous fiscal year's total of $737.95 billion, solidifying an impressive end to the previous year's journey of progress.

Looking ahead to 2025, Alphabet has set forth projections indicating that capital expenditures will reach $75 billion, significantly above previous levels

Advertisements

Advertisements

Advertisements

Advertisements