The alphabet said on Tuesday that he would speak $ 75 billion in his construction this year, 29% more than Wall Street expected, while posting income lacking in the target of analysts.
Technology giant shares decreased more than 7% in prolonged trading. The alphabet has won about 9% so far this year.
CEO Sundar Pichai said the company is expected to spend about $ 75 billion on capital spending for 2025.
Wall Street had been waiting for $ 2025 capital spending of about $ 58 billion, according to LSEG data. This would mark a modest increase over $ 52.5 billion in 2024.
The alphabet has spent a lot on a construction of infrastructure to support the research and integration of it into products such as research and cloud services.
But investors are growing careful about things and the possibility that search users will choose to use rival chatbots such as chatgpt. China’s Deepseek show, which he offers at a cut rate, has also raised new questions about capital expenses from Google and US rivals.
Digital advertising revenues, which represent about three -quarters of the total alphabet income, increased 10.6% to $ 72.46 billion in the fourth quarter. This could increase the increase of 10.4% of the third quarter and led the estimates of analysts of $ 71.84 billion, according to LSEG.
YouTube advertising revenues increased 13.8% to $ 10.47 billion in the fourth quarter, compared to 12.2% growth in the third quarter.
The main business official Philipp Schindler told analysts in a conference call that the growth was helped by election advertising, with the expenses combined by Democrats and Republicans ready compared to the 2020 elections.
The business of the main alphabet advertising has faced competitive competition as more advertisers on social media platforms like Meta on Facebook and Instagram or Tiktok by Detedance.
Google advertising technology and advertising -driven search business are both facing both US regulators looking to break the company.
Google’s cloud business posted a 30% increase in revenue to $ 11.96 billion in the fourth quarter, slowing down 35% in September. Analysts were expecting a 32.3% increase to $ 12.16 billion, according to data compiled by LSEG.
The soft numbers of the clouds come even after Google has built features of it within its Cloud computer platform. Pichai said in the call of the conference that makes use in her family the Gemini of the large language models had doubled in six months to 4.4 million users.
Cloud Microsoft’s largest rival also reported a poorer thhan cut increase on its Azure Cloud platform last week. Amazon’s shares, the largest Cloud provider, who will publish quarterly results on Thursday, were reduced 1.8% in the post -time trade.
Google revenues increased 12% to $ 96.47 billion in the fourth quarter, compared to the average analyst at birth of $ 96.56 billion, according to data compiled by LSEG.
The company reported a profit of $ 2.15 per share, beating $ 2.13 per share.
Search revenue increased 12.5% ​​to $ 54.03 billion. Investors have been concerned that users who choose to use he’s chatbots as a search chat could wet that Google business segment in future neighborhoods.
Pichai said that the summaries of him, the summaries created by him for the search questions displayed above the traditional Google links to the web, had increased the use of search.
The Waymo Self-Self-Machine Unit will debut internationally in Tokyo in the coming weeks, Pichai said.
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