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YouTube and Google Cloud revenue disappointed investors

Summary

YouTube and Google Cloud revenue disappointed investors Alphabet Inc’s fourth-quarter revenue fell short of Wall Street’s forecasts, dropping the company’s shares 5%. This was influenced by Google’s ad revenue, which has been declining steadily over the past three months. In […]

YouTube and Google Cloud revenue disappointed investors

Alphabet Inc’s fourth-quarter revenue fell short of Wall Street’s forecasts, dropping the company’s shares 5%. This was influenced by Google’s ad revenue, which has been declining steadily over the past three months. In addition, investors were disappointed with the performance of YouTube and Google Cloud.

The report marks the first publication of Alphabet’s earnings since Sundar Pichai took over as CEO from co-founder Larry Page..

In addition to indicators on profit and revenue, Alphabet, shared revenues published by its search engines, YouTube, and cloud services for the first time Google. Investors and analysts have long called for these numbers to be disclosed, believing that the company’s business could benefit from greater transparency..

«Thank you very much for the extended disclosure. I think this is the best challenge I’ve seen for Alphabet since covering their work.», – said Goldman Sachs analyst Heather Bellini. 

«Good the news is that Google is revealing YouTube ad revenue for the first time. This is what investors have been waiting for. This information should provide advertisers with valuable insights into the importance of YouTube as a digital advertising medium. According to the report, this service shows strong growth», – said eMarketer analyst Nicole Perrin.

YouTube and Google Cloud revenue disappointed investors

YouTube also generated $ 3 billion in subscription revenues in three months. The platform now has over 20 million YouTube music and premium paid subscribers..

YouTube generated $ 15.1 billion in ad revenue in 2019, up 35.8% from 2018. However, experts expected that revenue will be about 25 billion. Google Cloud, meanwhile, said about 8.9 billion dollars in sales last year, which is 53% more than in the previous year..

By comparison, Google’s search and advertising business earned $ 98.1 billion in 2019, less than rival Azure Microsoft Corp..