Google’s strong fourth quarter pushes Alphabet shares higher

Alphabet Posts a Big Quarter Too

Alphabet beat this and reported revenues of $56.9bn.

The company said fourth-quarter net income rose to $15.23 billion or $22.30 per share from $10.67 billion or $15.35 per share in the corresponding period of a year ago. To generate that quantity of enterprise, Google needed to spend $10.47 billion in visitors acquisition prices.

USA stock indexes were set to open higher on Tuesday, building on the previous session's momentum, as investors anticipated strong results from Amazon and Google-parent Alphabet while also looking for signs of progress on a pandemic-relief package.

YouTube ads, which brought in $6.89 billion in Q4, showed a 46 per cent jump from the corresponding quarter previous year when it earned $4.72 billion. Advertising revenue across Google and its streaming video service YouTube lifted 22% in Q4 to $46.2 billion, helping to push its parent company's revenue and income to meteoric heights. Analysts had expected $44.2 billion US, according to data compiled by Bloomberg Markets.

Chief financial officer Ruth Porat said the growth was driven by Search and YouTube. The government mentioned, "Consumer and business activity recovered from earlier in the year".

Shares of both the companies, set to report their fourth-quarter earnings after market close, were among the top boosts to the S&P 500. That resulted in a 42.7% gain in earnings. However, its shares rose 1.5%. Google Services contributed $52.9 billion in net income in the quarter, Google Cloud added $3.8 billion, and Alphabet's other bets added $196 billion. Still, it would appear that money seems to disappear in the cloud.

Despite its size and history of outsized growth, Alphabet (Google) was one of the hardest hit during the height of the pandemic.

Alphabet shares shot up more than 6% after the bell following its earnings report. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.