Google has not justified expectations of investors. Shares of Google are falling

Alphabet reported Monday on fourth quarter results. The company is well exceeded expectations of wall street income per share due to a tax rate that was much lower than expected, but the revenue forecast was below market expectations. Alphabet also revealed some long-awaited financial details about YouTube and Google Cloud.

the Current financial report was the first to Sundar Pichai as the head of the Alphabet. Recall that Google founders Larry page and Sergey Brin left posts, respectively CEO and President of its parent company Google Inc. in December last year. Income data, YouTube and Google Cloud finally gave the long-awaited presentation on the status of these two growing segments, but investors focused on a sluggish growth of Google, resulting in the company’s shares fell by of 3.90% on postmarket.

Net profit Alphabet by the end of 2019 increased by 11.7% to $34,343 billion, follows from the published statements. Diluted earnings for shares of classes A, B and C at the end of the reporting period amounted to $49,16 versus $43.7 in the previous year. Revenue increased by 18% yoy to $161,857 billion.

At the end of the fourth quarter, Google increased its net profit by 19% yoy to $10,671 billion. Revenue in the fourth quarter of 2019, net of acquisition costs traffic was $37.57 per billion Analysts had forecast revenue of $38,39 billion Diluted earnings for shares of classes A, B and C amounted to $15,35 vs $12,77 in the same period of 2018. Analysts had expected this indicator at level of $12,5.

“In 2019, we again achieved significant growth in revenue, it was $162 billion, which is 18% more compared to the previous year and 20% higher excluding exchange rate differences”, — PRIVare in the message words of the CFO of Google and Google Ruth Porat.

In addition to the traditional indicators of profit and revenue, Google revealed the revenue from cloud business, search, and YouTube. Investors and analysts have long called for the Corporation to disclose these figures, arguing that the shares and the company’s business can benefit from greater transparency.

In 2019, the revenue from advertising on YouTube amounted to $15.1 billion Is by 35.8% more than in 2018. Unit Google Cloud increased sales by 53%, earned last year’s $8.9 billion In the fourth quarter revenue was $2.6 billion Current report shows that Google still lags behind the dominant players in the market of cloud computing — Amazon Web Services (AWS) and Microsoft Azure. So, AWS previously reported a $9.9 billion revenue in the last quarter, which is approximately four times the quarterly revenue of Google Cloud. Although Microsoft did not disclose specific data on the income of its cloud platform Azure, it is believed that it is behind only from AWS, this means that Microsoft will most likely also makes the cloud more Google.

Revenue from advertising in the search engines and other formats increased by a modest 15% to $98,1 billion.