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Investing.com -- Google owner Alphabet reported Tuesday fourth-quarter revenue that missed Wall Street estimates as cloud revenue fell short of expectations at a time when the tech giant is ramping up investment in AI amid rising competition.
Alphabet Inc Class A (NASDAQ:GOOGL) fell more than 7% in afterhours trading following the report.
For the three months ended Dec. 31, the company reported earnings of $2.15 per share on revenue of $96.47B. That compared with expectations for earnings of $2.12 per share on revenue of $96.69 billion.
Advertising revenue rose to $72.46B in Q4 from $65.52B in the prior-year period, beating estimates of $71.73B, while YouTube advertising revenue rose to $10.47B from $9.2B, also beating expectations of $10.22B.
Google Cloud revenue rose year-over-year to $11.96B in Q4 from $9.19B in the prior-year period, compared with consensus estimates for $12.19B.
Alphabet said it expects to invest about $75B in capex in 2025.
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