Analysts polled by FactSet expect the search and advertising giant to report earnings per share (EPS) of $12.57, down from $12.91 a share expected at the beginning of the quarter, and revenue of $46.9 billion. Alphabet Inc has a 1 year low of $1,025.00 and a 1 year high of $1,503.21. Meanwhile, revenue for Microsoft's intelligent cloud segment, which includes its Azure public cloud, jumped 26.5 percent from the same period a year earlier to $11.87 billion for the quarter ended December 31.
Google Cloud revenue grew 53% to $2.61 billion from $1.71 billion a year earlier. For comparison's sake, Amazon Web Services was reported at $9.9 billion in revenue for Q4 while Microsoft's Intelligent Cloud division pulled in $11.9 billion.
Google closed Friday at $1,432.78. Finally, Mizuho lifted their price objective on shares of Alphabet from $1,450.00 to $1,650.00 and gave the company a "buy" rating in a research report on Monday, January 27th. Shares of the company are off around 4% in after-hours trading, following its disclosure. That elevation was widely seen as a positive by investors on the assumption that Pichai might be more parsimonious with Alphabet's perennially money-losing "other bets" such as its healthcare unit Verily and its self-driving auto unit Waymo, as well as more forthcoming on financials.
YouTube's annual ad sales increased almost 36% year-to-year to $15.15 billion in 2019.
"Our investments in deep computing, including artificial intelligence, ambient computing and cloud computing, provide a strong foundation for continued growth and new opportunities for Alphabet", said Sundar Pichai, CEO of Alphabet and Google. But analysts were looking for $38.4 billion. The company made a profit of $10.6bn over the quarter and $34.4bn over 2019.
But new concerns have emerged among investors about whether its dominance will last as US antitrust regulators investigate Google and as Amazon and Facebook continue to grow their ads businesses globally.
While Google is making some gains in the cloud, its chief competitors have been doing well at the same time.
For all that, advertising remains the big driver for Alphabet's business. "I'm very pleased with our continued progress in finding and building two of our newer growth areas - YouTube, which has annual ad sales of $ 15 billion and Cloud, which has ongoing sales of $ 10 billion". Amazon, Apple Inc. and Facebook Inc. all face their own investigations as well.