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Google spending hits record heights

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Taking Back Sunday – MakeDamnSure Description video: Taking Back Sunday \”MakeDamnSure\”\r\nWarner Bros. Records Inc.\r\nDirected by Marc Klasfeld Google spending hits record heights Google released quarterly results showing that spending continues to grow faster than revenue as the web search leader […]

Taking Back Sunday – MakeDamnSure

Description video:
Taking Back Sunday \”MakeDamnSure\”\r\nWarner Bros. Records Inc.\r\nDirected by Marc Klasfeld

Google spending hits record heights

Google released quarterly results showing that spending continues to grow faster than revenue as the web search leader seeks to expand its business. Such results do not add enthusiasm for the corporation in the stock markets, despite the continued dominance of Google in advertising sales..

Google spending hits record heights

Alphabet shares lost 1.6% after the close to $ 1,268.50 a share, offsetting the 1.95% gain recorded in regular trading amid news that Google has made an offer to acquire Fitbit Inc.

The corporation has increased spending in recent years in areas such as cloud computing and consumer electronics, which it deems necessary to maintain its industry leadership in the face of fierce competition from Amazon and Microsoft..

New companies push Google to sell subscriptions, devices and technology licenses. But this, in turn, forces you to invest in personnel, facilities and content.. Google plans to hire over 20,000 people this year, largely to work in its new divisions..

Nicholas Hyatt, stock analyst at Hargreaves Lansdown, said he is not overly concerned about spending.

«CEO Sundar Pichai can turn off speculative spending at any time should he suddenly become more interested in profitability, but we suspect most investors would prefer him to stick with the current approach.», – he stated.

Alphabet reported $ 1.5 billion in unrealized third-quarter losses from shares held by other companies, which helped negate nearly $ 1 billion in profits. Alphabet spokesman declined to disclose exactly which investments failed.

The company’s profits were also affected by the collection of $ 554 million from the French tax authorities in September.

Alphabet Chief Financial Officer Ruth Porat told financial analysts the pace of revenue growth highlighted «strength and dynamism» company.

«Over the past 12 months, we have generated more than $ 150 billion in total revenue», – she said.