The Google matrix, Alphabet, has presented the results corresponding to the last quarter of its fiscal year, and investors have become quite cold with cloud data, one of its main growth bets. A disappointment that has been multiplied by the enormous increase in investment in AI to try to defend its ‘crown’ of the searches, and that has led the company to fall strongly and drag others of its peers.
The American firm has reaped 81,620 million dollars in incomecompared to 82,820 million predicted by the market, signing an interannual increase, a percentage of less than 13% harvested in 2023. Growth is strong, but slowdown has increased, contravening the expectations of investors, who expected a Maintenance of the same. All this has led Alphabet to fall 7% in the ‘After Hours’, and to push Amazon, whose main business is also that of the cloud, to be left 2%.
In addition, the company, a member of the Magnificent seven, obtained Encryted benefits at $ 2.15 per sharecompared to $ 2.13 for participation, exceeding expectations. Specifically, the net profits of the technological have promoted to 26,536 million dollars.
The two great disappointments of Alphabet have been in the cloud and in capital investments for next year. So, The cloud division obtained 11,860 million dollars in incomea volume less than OS 12,190 million estimated by the market. On the other hand, while capital investment expectations were 58,000 million, the signing of the SUCTAR PICHAI has announced an expense of 75,000 million in AI, with the aim of increasing its growth and defending its position. This announcement has promoted the firm of Chips Broadcom, which earns 5% in the ‘After Hours’.
In this sense, Pichai has assured that, “with the aim of accelerating our progress, we will increase our investment in AI innovation.” The CEO has celebrated the “continued strength” of the main businesses of the firm: The online search and YouTube. In the first case, the income has increased from 48,000 to 54,000 million dollars, while in the second case, the ads of the video platform have risen from 9,200 million dollars to 10,470 million.
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