Google’s parent company Alphabet Inc (NASDAQ:GOOGL) has posted revenues of $4.7 billion (up 31%) from YouTube and $2.6 billion (up 53%) from the cloud business in Q4 2019. It is the first time that the search giant has disclosed the revenues for Cloud business and YouTube. However, it has not revealed the profit figures yet.
Alphabet reports revenues of $46.075 billion
Alphabet has reported revenues of $46.075 billion in Q4 2019 against the analysts’ estimates of $46.87 billion. It is an increase of 17% when compared to the same period last year. Chief Executive Officer of Google and Alphabet, Sundar Pichai, said the company’s investments in cloud computing, ambient computing, and artificial intelligence expect to provide a solid base for the new opportunities and continued growth going forward. He is pleased with the progress in the search. Sundar also said the company focuses on two growth areas Cloud and YouTube.
The revelation of profits is vital for investors
Revealing profits is vital for investors to estimate how much Google spends on marketing and sales. It helps the investors to gauge up whether Google can catch up with Microsoft or Amazon in the cloud business. The investors can also learn whether the new entrants in the streaming video segment are putting pressure on the margins of YouTube. Ruth Porat, Chief Financial Officer of Alphabet, said the company will triple the sales force for the cloud business.
Investors need more disclosures
Chief Executive Officer of Longbow Asset Management, Jake Dollarhide, said investors want more details from the tech companies. Longbow Asset holds a stake in Alphabet. According to Jake, the companies on Wall Street are less transparent. The stock of Alphabet trades lower after reporting disappointing results on Monday. It has performed well in the past year, gaining 33%.
Google provides only a few details, even in the cloud business. Porat during an earnings call said Google Cloud Platform performed well to report higher growth when compared to the overall cloud.
According to the analysts, Sundar must adopt investor-friendly measures and reveal more details to attract investors. It is the first quarterly report under Sundar, who took over the charge of CEO of Alphabet.
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact email@example.com.