Google's parent company's performance soars! For the first time, YouTube ad revenue, cloud business as the biggest bright spot...
On Tuesday morning, Google parent Alphabet reported fourth-quarter financial data, with revenue and net profit still growing at a faster pace, but at the slowest pace in the past five years. Alphabet also reported for the first time advertising revenue from YouTube, its video site, and revenue from its fast-growing cloud business. It is also part of a move to increase financial transparency after Sundar Pichai, the company's chief executive, took over. Alphabet closed the day up 3.48 percent, with a market capitalisation of $102.2 billion.
Specifically, Alphabet's fourth-quarter operating income was $46,075 million, up 17 percent from $39.276 billion a year earlier, and fourth-quarter net profit was $10.671 billion, compared with $8.948 billion a year earlier. Among them, the highest percentage of advertising revenue was $37.934 billion, up from $32.518 billion a year earlier.
The most notable note is that Google first reported advertising revenue from YouTube, its video-sharing site, with $4.72 billion in advertising revenue in the fourth quarter, compared with $3.61 billion a year earlier. On the pay-per-view side, YouTube's YouTube music and premium packages have 20 million pay-per-view subscribers, and its TV service has 2 million pay-per-view subscribers.
Alphabet's other draw with investors was its fast-growing cloud business, which generated $2.61 billion in revenue in the fourth quarter, compared with $1.71 billion a year earlier. It is the internet giant's fastest-growing new business and has ambitiously locked its rivals into Amazon's AWS and Microsoft's Azure. Both Amazon and Microsoft are now focusing on the cloud business in the future. Microsoft's smart cloud business generated $11.9 billion in revenue in the latest quarter, up 27 percent from $9.4 billion a year earlier. Amazon's cloud business, AWS, reported fourth-quarter revenue of $9.954 billion, up 34% from a year earlier. The U.S. Department of Defense recently handed over a $10 billion joint enterprise defense infrastructure cloud service contract to Microsoft, causing much anger at Amazon and asking the court to suspend the deal. Competition between the two sides in the cloud business is evident.
Alphabet's shares have risen 28.1 percent in the past 12 months, amazon 23.5 percent, Microsoft 68.1 percent and Apple 88.7 percent.
Google has been the most popular Internet platform for internet advertisers, and its continued rapid growth in Internet advertising made it the fourth publicly traded company in December to have a market capitalisation of more than $1 trillion in the U.S. stock market, including Apple, Microsoft and Amazon, all of which have exceeded $1 trillion in the past two years. But as U.S. antitrust regulators investigate Google and Amazon and Facebook continue to expand their advertising operations around the world, investors are concerned about whether Google's dominance of Internet advertising will persist.
Go to Discovery - "Take a look" And browse "Friends are watching"
sent to have a look