📉 Stock Falls 8%: Alphabet’s stock took a hit after earnings missed expectations, and cloud growth slowed down.
💰 Revenue Performance:
This quarter, Alphabet made $96.5 billion, up 12% from last year but slightly below expectations. However, EPS grew 31% to $2.15, beating forecasts!
📌 Key Business Highlights:
🔹 Google Services (Search & YouTube)
Revenue reached $84.1 billion (+10%).
Search ads made $54 billion, slightly above expectations, thanks to U.S. election-related spending, which was nearly double that of 2020!
YouTube ads grew 13.8% to $10.5 billion, surpassing expectations. YouTube’s Connected TV watch share hit 11.1%, beating Netflix and Prime Video!
🔹 Google Cloud ☁️
Revenue: $12 billion (+30%), driven by AI infrastructure & cloud services, but slightly below the $12.1 billion forecast.
🔹 Other Bets 🎲 (Waymo, Verily, etc.)
Revenue came in at $400 million, lower than expected.
Waymo is expanding, planning to test in 10 new cities by 2025, but parts of the business face restructuring pressures.
🚀 AI & Future Investments
Alphabet is pushing AI innovation, launching AI-powered search features now available on devices like the Samsung Galaxy S25.
However, it also plans $75 billion in 2025 capital spending, far exceeding the expected $57.9 billion, raising concerns about whether this big investment will pay off.
Overall, while the report had some challenges, Google Cloud & YouTube performed well, and AI investments are ramping up. Now, all eyes are on whether these big bets will deliver strong returns!
Buy on dips!
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