Alphabet Inc. (NASDAQ: GOOGL) saw its stock tumble over 7% in after-hours trading after reporting fourth-quarter revenue that missed Wall Street estimates. The tech giant’s cloud business underperformed, despite strong growth in advertising and YouTube revenue, as it ramps up investments in artificial intelligence to stay competitive.
For the quarter ending Dec. 31, Alphabet posted earnings of $2.15 per share on $96.47 billion in revenue, slightly below analyst expectations of $2.12 per share on $96.69 billion in revenue.
Advertising remained a bright spot, generating $72.46 billion, up from $65.52 billion a year ago, and surpassing projections of $71.73 billion. YouTube ad revenue also climbed to $10.47 billion, exceeding the forecasted $10.22 billion.
Google Cloud, however, failed to meet expectations, reporting $11.96 billion in revenue compared to the anticipated $12.19 billion. While cloud revenue grew from $9.19 billion a year earlier, it fell short amid rising competition in AI-driven cloud services.
Alphabet announced plans to invest approximately $75 billion in capital expenditures in 2025 as it prioritizes AI innovation. This significant spending underscores the company’s push to enhance infrastructure and remain a dominant force in the tech landscape.
Despite robust ad revenue, investors reacted negatively to the cloud unit’s underperformance, leading to the sharp stock decline. With AI investment intensifying across the industry, Alphabet faces pressure to deliver stronger cloud growth while maintaining leadership in digital advertising.


100+ Global Companies Push Governments to Prioritize Electrification for Economic Growth
Kingboard Holdings Shares Surge After HK$11.77 Billion Block Trade to Expand PCB and AI Supply Chain Business
Google’s Open-Source AI Data Center Cooling Design Raises Commoditization Concerns
Ukrainian Drone Makers Target Japan and Asia Defense Market
JPMorgan Sees Strong Strategic Value in Potential AbbVie Acquisition of Apogee Therapeutics
US Raises Concerns Over Possible ASML EUV Machine Transfer to China
Apple Signals Product Price Hikes Amid Rising Memory Chip Costs
Samsung Gains Interest from BYD, Google, AMD as AI Chip Demand Strains TSMC Capacity
Obayashi to Acquire Multiplex in $526M Expansion Deal
Qantas Unveils Wellness-Focused Nonstop Sydney-London Flights to Reduce Jet Lag
China Adds MP Materials, USA Rare Earth to Export Control List Amid Escalating U.S.-China Trade Tensions
Saudi Aramco Explores Sulphur Business Stake Sale to Raise Billions
Chinese Social Media Giant Xiaohongshu Eyes Hong Kong IPO at Over $70 Billion Valuation
Carro Expands Into Australia With Acquisition of Used-Car Platform CarPlace
Trump Says Anthropic No Longer Seen as National Security Threat
TD Bank Expands Employee Monitoring Software to Boost Productivity Amid Privacy Concerns
SpaceX Stock Slides After IPO Rally as Valuation Concerns Grow 



