Home > Communication > Alphabet Shares Slip Despite Q4 Revenue Spike

Alphabet Shares Slip Despite Q4 Revenue Spike

Shares in Google parent company, Alphabet, have slumped 3% in after-hours trading, despite reporting a 22% year-on-year lift in revenues, and US$8.9 billion in quarterly profit.

For the last three months of 2018, Alphabet earned US$39.27 billion – its share price sank as costs rose.

The bumper earnings contrast a slew of security issues, privacy controversies and multi-million dollar regulatory fines.

In what appears to have concerned investors, Alphabet’s fees to companies (e.g. Apple) to be its default search engine soared to US$7.4 billion, versus US$6.6 billion the same time last year.

Alphabet executives have pledged to sell more directly to consumers, as they seek to reign in such costs.

As its Google Pixel smartphone continues to lag behind competitors, commentators assert Alphabet still remains dependent on other company’s hardware to reach customers.

The company’s “other bets” – i.e. experimental projects such as self-driving cars and health division – saw losses nearly double to US$1.3 billion, up from US$748 billion the previous year.

Despite a slew of user privacy concerns, advertising revenues climbed 20% YoY to US$32.6 billion – the same rate of growth as the previous quarter.

You may also like
Microsoft Unveils First Gaming Monitors Designed For Xbox
EU Launches Antitrust Probe Into Google Ads
Microsoft Hits $2 Trillion Market Value
Microsoft Surface Cranks Up Tax Time Sale
News Corp Boss: Google’s Cookie-Ban Biggest Tech Change Of 2021