Google parent company Alphabet (GOOGL) has released its fourth quarter earnings report, surpassing consensus estimates for both earnings and revenue. However, despite the positive results, GOOGL stock experienced a decline as the core advertising business slightly missed expectations. Investors expressed concerns about the potential impact of generative artificial intelligence on internet search.
For the quarter ending December 31, Google earnings soared by 56% to reach $1.64 per share. These earnings are reported under generally accepted accounting principles (GAAP). Additionally, Google’s gross revenue increased by 13% to $86.31 billion during Q4. These figures exceeded analysts’ projections, as analysts polled by FactSet had anticipated earnings per share of $1.60 on revenue of $85.25 billion.
One area of success for Google was its cloud computing division, which experienced re-accelerated revenue growth and surpassed estimates. However, the slight miss in the advertising business raised concerns among investors, leading to a decline in GOOGL stock.
The rise of generative artificial intelligence has sparked worries about the future of internet search. As this technology continues to develop, it may have a significant impact on traditional search methods. Investors will be closely monitoring how Google adapts to this changing landscape and navigates the potential challenges it presents.
Despite the stock decline, Google’s strong earnings and revenue performance in Q4 demonstrate the company’s continued success and ability to innovate in a rapidly evolving industry.