Alphabet Inc., the parent company of Google, released its Q4 2024 earnings report, detailing revenue of $78.3 billion, a 6% increase year-over-year, although this fell short of analysts’ expectations of $79.5 billion. The company’s net income for the quarter was reported at $13.6 billion, down from $15.8 billion in the same quarter of the previous year. CEO Sundar Pichai highlighted the strong performance of Google’s cloud segment, which saw a 29% growth, bringing in $8.5 billion for the quarter. ‘Our cloud business has become a vital part of our growth strategy as we continue to invest heavily in AI and machine learning,’ Pichai stated during the earnings call. Despite impressive growth in the cloud sector, advertising revenue, which constitutes a significant portion of Alphabet’s earnings, grew only 2% year-over-year to $61.9 billion. CFO Ruth Porat noted that YouTube ads also faced challenges, generating $8.2 billion, a drop from $8.7 billion in the year-ago quarter. Alphabet’s stock experienced volatility following the report, closing down 2% on the day. Analysts worry about the impact of rising competition in the digital advertising space and the potential slowdown in user engagement. The company’s expenditures on research and development rose to approximately $32 billion for the year, underlining its commitment to technological innovation. As Alphabet navigates these challenges, it remains focused on enhancing its AI capabilities, particularly in services like Google Search and YouTube. The tech giant’s strategy will largely hinge on its ability to sustain growth across various segments amidst a rapidly evolving digital landscape.
Alphabet Reports Q4 2024 Earnings with Mixed Results Amidst Growth Initiatives
