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article imageAlphabet earnings: A mixed bag Special

By Tim Sandle     Feb 4, 2020 in Business
Alphabet's shares have slipped lower following Google's parent company revealing its fourth quarter earnings report. The financial figures indicate mixed results from some of its key properties. Haris Anwar looks into what's behind the figures.
Financial analysts were expecting $38.40 billion in revenue from Alphabet. However, the financial data provided to markets indicates that Alphabet missed on quarer 4 revenue targets, posting revenues of $37.57 billion.
In terms of where Alphabet's profits are coming from, at the top is Google Search which brings in $27,185 billion in sales. This is followed by YouTube advertising, which has contributed $4,717 billion to Alphabet's overall revenue share for the quarter. Such data indicates that spending on digital advertising shows no signs of slowing.
However, other areas in which Alphabet are investing in did less well, such as cloud computing along with other innovations.
To gain an insight into what the Alphabet figures are signalling, Digital Journal caught up with Haris Anwar, analyst at financial markets platform Investing.com.
Anwar explains that the figures issues can be interpreted from different perspectives: "Alphabet’s Q4 earnings are a mixed bag. While the top line revenue number has missed expectations, it beat on EPS estimates."
In terms of what is good, Anwar explains: "The biggest positive is that, for the first time, investors are seeing the breakdown of Google’s main revenue-generating units, such as its fast expanding cloud business. In Q4, Google’s cloud sales are up 53 percent, while its YouTube business expanded more than 30 percent, both showing a strong trajectory."
However, the figures are not as positive as some were expecting. Here Anwar says: "While the results won't awe the Street, they're far from a big disappointment for the tech giant. More transparency in the company’s financial reporting will provide investors with a better insight into where Google stands in terms of competition and where it’s facing competitive pressures."
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