Alphabet seen the worst Q4 since 2015, breaking a YouTube ad for the first time

(Reuters)—Google-parents are the worst fourth-quarter revenue growth as 2015, sent the share declined by nearly 5%last Monday, to cover up the public for the first time in YouTube advertising revenue. Revenue from Google’s cloud services rose by 53% to $ 2.6 billion in the quarter, and ads on YouTube increased by 31%to $ 4.7 billion. In addition, YouTube generated about $ 750 million in subscription and other non-advertising income, the letter to the CEO of transport-related information said.

Google through its eponymous search engine as well as properties such as YouTube is already the most attractive to advertisers for a decade, so that it can last month to become the four listed company a top $ 1 trillion in market capitalization. But a new problem has emerged among investors about whether its dominance 将最后作为美国反托拉斯监管机构调查谷歌和作为 and Facebook continues to grow its advertising business in the global scope.

Google has blamed foreign exchange rates and one-time product changes of recent errors, from 20%revenue growth investors have become accustomed to from the company. Total sales in the fourth quarter of $ 46. 08 billion, an increase of 17 per cent, compared with an average estimate of $ 46. 94 billion dollars between the financial analysts tracking the Refinitiv. Google’s advertising sales fake shopping quarter of $ 37. 93 billion dollars, up to 16. 7% from the same period last year, when Google’s”other”revenue buckets including app stores and cloud computing transactions rose 21. 6%to $ 7. 88 billion dollars. Shares of the company fell about 4. 66%, in extended trading to $ 1,413.28.

“The stock price improvement, and a line miss is not enough, send the next,”says Michael Pachter, the analysis at Wedbush Securities. “YouTube is impressive, the 15 billion dollars a year, the cloud is not so of $ 8.9 billion dollars.”

One said that YouTube has 20 million subscribers of YouTube Music and pay packages, and respectively have 2 million paying subscribers for its TV services. Other financial analysts said YouTube’s advertising revenue to the people left a deep impression. “YouTube is less than the General assumption, but on the other hand, the search seems to have been to accelerate growth faster than feared,”said James Cordwell, an analysis in the Atlantic stock.

The alphabet cost has been increased, with the hiring of thousands of salespeople, establishing a new data center and sales Google full by hardware and other ventures. In the fourth quarter, the letter of the total costs and expenses increased 18. 5% from a year ago to $ 36. 809 billion dollars. That left a profit of $ 10. 67 billion to $ 15. 35 per share with analysts average estimates of $ 8. 787 billion dollars 12. 53 per share.

Google faces internal challenges. Some 119 000 employees resist being weapons-related software, used for military or review the search for a product in the user, leading Google to abandon this effort. Others expressed frustration with the curb on the company within the scope of the discussion with what they have described as retaliation for the Labor Organization.

In December, an additional role of the Alphabet CEO Larry Page, because he and the other co-founder Sergey Brin back even further from the daily management. It is unclear whether a planned major changes to the workplace to quell the unrest. But a shareholder lawsuit that alleges that company leaders covered up sexual misconduct at Google, recently entered mediation, and threaten to loosen the control held by Page and Brin.

On Monday, one analyst told his investment approach will be similar to his predecessor. His promotion coincided with a change in the text of the mother’s financial disclosure Investors previously generally been criticized as too opaque, to understand how it is ageing a specific challenge. Stock Alphabet word is 28. 1%over the past 12 months, into the Monday, than 21. 8%for Facebook shares, 23.5%for Amazon, 68.1%for Microsoft, and 88. 7%Apple.


The alphabet of the Chief Financial Officer Ruth Porat said the outbreak of a new coronavirus in China may affect the company’s hardware business, if it leads to a protracted shutdown, in Asia. Google said last week it was temporarily closing all its offices in mainland China, Hong Kong and Taiwan due to the coronavirus. It has thousands of engineers and numerous personnel throughout the region, including hardware engineering based on Taiwan.

Chinese advertisers spend billions of dollars annually on Google ads to reach foreign customers, since many of the Google apps are blocked in the local by Beijing’s strict control over the Internet. At the same time Facebook is under the wrong information about the rapid spread of the virus, the letter YouTube, which has 2 billion monthly users indicated that they do not consider inaccurate information about the health violations of their policies.

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