Google Parent Alphabet Reports Mixed Earnings As Moon Shot Programs Blast OffBy Gladys Abbott Jan 28, 2017
Alphabet reported earnings for its fourth quarter and beating the Wall Street expectations, the company generated more than $26 billion, up 22 percent over the same quarter previous year. The company blamed taxes for the shortfall.
Google parent company Alphabet reported its fourth-quarter results today after the market close.
Along with the continued strength of YouTube, Alphabet on Thursday credited mobile search with driving fourth-quarter revenue.
However, its other bets are still making losses, albeit at a lesser pace. To be added that the net income was 5.32 billion dollars, up from 4.91 billion dollars a year earlier.
Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) reported fourth-quarter earnings last night, missing earnings expectations despite a beat up top. That investment looks like it paid off as faster Other Revenue growth - up 62% to $3.4 billion in the fourth quarter, according to Bloomberg - which includes cloud computing.
What you need to know now about the upcoming tax season
The IRS recommends keeping your tax returns and supporting documents for a minimum of three years in case you get audited. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page .
Meanwhile, Lloyd Walmsley of Deutsche Bank came away upbeat from Alphabet's earnings, citing solid two-year growth trends in Google sites revenue. In the past year "mobile shopping truly went mainstream", said Google CEO Sundar Pichai. "We're committed to this for the long term as a great way to bring a handsome, seamless Google experience to people", he explained.
Web and mobile ads are dropping in value. For all the growth in non-advertising revenue, however, 87% of Google's revenue is still from advertising sales-although this is down from about 90% in the same quarter past year. Google is particularly dominant in the mobile space - 96% of all search-ad clicks on mobile devices are Google ads compared to 81% on traditional desktop computers, according to estimates from digital-marketing firm Merkle Inc.
"This performance was led by mobile search and YouTube", Ruth Porat, CFO of Alphabet, stated. Other Bets segment is engaged in the sale of Nest hardware products, Internet and television services through Google Fiber, and licensing and research and development (R&D) services through Verily. If you remember, the company released its new line of smartphones called the Pixel and Pixel XL in October, which is competing with Apple's iPhone. MCF Advisors LLC increased its position in shares of Alphabet by 1.9% in the second quarter. Sales for Google Home have been estimated at between 400,000 and 500,000 units.
We now estimate that PC search ads, mobile search ads and YouTube ads contribute over 60% to the firm's value.
Abhey Lamba, reiterating a Neutral rating, writes that "we see limited upside from a valuation perspective and it is too early to expect upside to estimates".
You may also like...
Falcons dismantle Packers in NFC Championship Game
Jan 27, 2017
India vs England 1st T20
Jan 27, 2017