On Monday, Google parent company Alphabet released its first earnings report since Sundar Pichai took over as CEO in December when founders Larry Page and Sergey Brin stepped down from their management roles.
On the revenue front, the snapshot was mixed, and shares slid nearly 5 percent in after-hours trading.
Total fourth-quarter revenues were $46.07 billion, compared to the consensus estimate of $46.94 billion. Earnings per share were $15.35, compared to an estimate of $12.53.
The report was highly anticipated as analysts predicted that Pichai, formerly the CEO of Google and the public voice of the company in past earnings calls, would shift toward more transparency for shareholders.
"To provide further insight into our business and the opportunities ahead, we're now disclosing our revenue on a more granular basis, including for Search, YouTube ads, and Cloud," said Ruth Porat, chief financial officer of Alphabet and Google.
This is crucial for investors as both the video streaming site and cloud computing business have become leading drivers of growth for the tech giant. The new numbers confirm the narrative.
YouTube ads pulled in $4.72 billion in revenue for the quarter and $15.15 billion for the year. That compares with $11.16 billion for all of 2018.
Google Cloud generated $2.61 billion for the quarter and $8.92 billion for the year. That compares with $5.84 billion for all of 2018.
The division is in fierce competition with the likes of Amazon and Microsoft, which have also grown their presence in the cloud computing sector significantly in recent years.
Ad revenues remain the biggest chunk of the business, however, with $37.93 billion in Q4. That's up from $33.91 billion in Q3, and $32.63 billion for the same quarter last year.
"Our investments in deep computer science, including artificial intelligence, ambient computing, and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet," said Pichai. "I'm really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate."
Over the quarter, Google also acquired the fitness tracker company Fitbit for just over $2 billion.
It's also facing down a federal antitrust probe that could shake things up for the company in the year ahead.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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