Google Is Hiring Thousands More People Across the US


Shares in Alphabet slid 2.7 per cent in after-hours trade on the results, highlighting concerns about rising costs for the online giant and profits weaker than expected.

Chief executive Sundar Pichai said during Thursday's Alphabet earnings call that Google (googl) would be "making significant investments in offices across nine states, including Colorado and MI". Revenue beat expectations by more than $400 million but earnings per share of $9.70 missed Wall Street consensus estimates.

For the year, the company spent 16.6 billion in research and development (unaudited) and almost $12.9 billion in sales and marketing its products and services. While Alphabet's mixed fourth-quarter results have pushed the shares down a bit in afterhours trading, we believe the stock remains fairly valued. The fourth quarter 2017 includes a provisional tax benefit for the impact of the U.S. Tax Cuts and Jobs Act of 2017 of approximately $US789 million, Amazon said.

Amazon posted revenues of $60.5 billion for the last quarter of 2017, which is up from $43.74 billion in the same period of 2016.

Those numbers are up from the last three months of 2016, when Google reported total revenue of almost $26.1 billion, with non-GAAP earnings of $9.36 per share.

Despite that hit, Alphabet is still very profitable [PDF] as you'd expect for a biz with near monopolies in ads, search and mobile phone operating systems: it would have banked $6.8bn in profit for the quarter without the taxation charge. Advertisers backed away from YouTube after their ads were found on videos that contained inappropriate content, as well as clips that promoted extremist views. Susquehanna was the most bullish, raising its price target to US$1,475.

More news: Translation Mix-Up Dents Polish Defense of Holocaust Bill

However, the Google parent company impressed on the revenue front, raking in $32.32 billion, marking a 24% climb compared to the year-ago quarter. And in the United States and Canada, total daily users fell by almost 700k.

Alphabet is attempting to maintain sales growth through new businesses, experimenting with operating a fleet of self-driving taxis through Waymo and licensing medical technology at Verily.

The company used the earnings report to announce it had named board member and former Stanford University president John Hennessy as chairman, replacing Schmidt, who announced his departure in December.

The company's advertising business was higher from Q4 of 2016.

Even if Google Cloud is the fastest growing public cloud as Alphabet CEO Sundar Pichai touted, the big picture is that Google is playing catch-up with AWS and is spending heavily, says Youssef Squali, analyst at SunTrust Robinson Humphrey.