Revenue from Alphabet's cloud business came in lower than expected as the company tries to maintain momentum on AI. Bloomberg's Mandeep Singh breaks down fourth quarter earnings from the tech giant.
Google parent Alphabet Inc. posted fourth-quarter revenue that missed analysts’ expectations as growth in its cloud business slowed. Shares fell.
Sales, excluding partner payouts, were $81.6 billion, Alphabet said Tuesday in a statement. Analysts had projected $82.8 billion, according to data compiled by Bloomberg.
Investors have urged Alphabet to demonstrate that it is maintaining momentum across its businesses as it spends more heavily on AI, and as competition in that market intensifies. Google’s cloud unit had benefited from the AI boom as startups required more computing power for their work, but sales missed estimates. Google Cloud still trails behind Amazon.com Inc. and Microsoft Corp. in size.
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