The head of the Internet giant is “extremely pleased”. But Wall Street and the investors had significantly expected higher Numbers. And then the US investigators Google are also on the heels.
Facade of the headquarters of Alphabet Inc. in Mountain View in the US state of California
The Google parent group, Alphabet has expanded in the last quarter of his business is strong, due to rising costs, but much less deserved. While sales in the year, the Dollar rose by one fifth compared to 40.5 billion dollars (the equivalent of 36.5 billion euros), decreased the profit from 9.2 to 7.1 billion dollars.
A year ago, however, the positive effects of US tax reform had driven the Surplus high. At the same time, assessment of loads now, losses on investments in other companies on the result. In addition, investments in the Expansion of the Cloud business, expressed as the profit.
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Google boss Sundar Pichai stated that he was “extremely pleased” with the “strong sales growth”. Wall Street reacted, however, disappointed analysts had expected higher Numbers. The Alphabet shares fell in after-hours trade to more than one and a half percent.
The Google advertising business contributed the largest part of the cake
Especially the digital advertising business, Google gave Alphabet high revenue: These revenues rose to nearly $ 34 billion (a plus of 17%). The revenue from other areas, including “Cloud Computing” – so storage space and computing power provided via the Internet and the business with the Pixel of Smartphones grew compared to last year by around 40 percent to 6.4 billion dollars.
Robot cars, and drones to devour money
New product developments provide for a high cost: As the robot-car-company Waymo or the delivery drones Lingen-project Wing a lot of money, generate but in the ratio of weak sales. Although the collected proceeds of this Alphabet ranges from 146 rose to $ 155 million. The operating loss increased from 727 to 941 million dollars.
In addition, the Internet giant struggles with state regulators: The competition practices of the Alphabet are currently being investigated by the US Congress and the Ministry of justice. Also, the prosecutors of almost all U.S. States have initiated antitrust investigations against the group. They examine, among other things, whether the market leader gained unfair advantages over smaller rivals.
jj/bri (dpa, afp, rtr)