Alphabet shares sink on Q4 revenue miss
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The news: Alphabet shares dived in after-hours trading on Wall Street as Google's parent company missed quarterly revenue estimates.
The numbers: Fourth-quarter revenue rose 12% year on year to USD96.47 billion ($154.18 billion), short of average estimates of USD96.56 billion, according to LSEG data.
Revenue from Google Cloud increased 30% to USD11.96 billion, missing estimates of a 32.3% rise to USD12.16 billion, and down from 35% growth in the previous quarter.
However, the tech giant reported profit of USD2.15 per share, beating estimates of USD2.13 per share.
Alphabet shares were last down more than 7% in after-hours trading on the Nasdaq, having closed the day 2.56% higher.
The context: Alphabet CEO Sundar Pichai called Q4 a "strong quarter driven by our leadership in AI and momentum across the business".
He noted that AI advances in Google's search business are increasing user engagement, while the company's AI-powered Google Cloud portfolio is seeing stronger customer demand.
Pichai also said that Alphabet expects to invest around USD75 billion in capital expenditure in 2025.
The sources: Alphabet media release, Reuters
