Investing.com – Alphabet (NASDAQ:) reported on Monday fourth-quarter that beat analysts’ forecasts, but revenue fell short amid slowing growth in its core-advertising business.
Alphabet A (NASDAQ:) announced earnings per share of $15.35 on revenue of $46.08B. Analysts polled by Investing.com anticipated EPS of $12.5 on revenue of $46.91B. That with comparison to EPS of $12.77 on revenue of $39.28B in the same period a year before. Alphabet A had reported EPS of $10.12 on revenue of $40.5B in the previous quarter.
The company’s core advertising business grew 16% to $37.9 billion, slower than the 20% growth last year from last year’s fourth quarter.
Cost per click on Google properties — the amount Alphabet charges advertisers for each ad placed on its web sites — grew 18% from last quarter, underpinning hopes that Google’s pricing power for ads has steadied following a wobble last year.
Against calls from investors for the company to provide more insight into the performance of its businesses, Alphabet provided growth metrics for its cloud business, search and YouTube.
“In 2019 we again delivered strong revenue growth, with revenues of $162 billion, up 18% year over year and up 20% on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “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.”
Google cloud revenue surged 53% $32.52 billion for the quarter year-on-year, YouTube grew 31% and search was up about 17%.
“Alphabet’s earnings show no sign that spending on digital advertising is slowing. With more than 90% of all internet searches taking place through Google and its subsidiary, YouTube, the company is in a unique position to leverage that dominance,” Investing.com analyst Haris Anwar said. “Another reason to remain optimistic is that the company is at the forefront of new technology innovations that will fuel future growth and could help diversify its revenue away from the ad business. In particular, self-driving car technology presents the greatest opportunity of all for Alphabet.”
Alphabet A shares are up 10% from the beginning of the year , still down 1.17% from its 52 week high of $1,500.58 set on January 22. They are outperforming the Nasdaq which is up 2.59% year to date.
Alphabet A shares lost 3.91% in after-hours trade following the report.
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