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CEO of Alphabet and Google Stsar Pichai in Warsaw, Poland, on March 29, 2022.
Mateusz Wlodarczyk Nurphoto | Getty images
Alphabet The shares fell more than 7% of the previous market on Wednesday after the search giant He left the fourth quarter of Wall Street Income expectations and announced great spending plans for their continuous building of artificial intelligence.
The company exceeded profit estimates in 2 cents per share. The income reached $ 96.47 billion, behind the $ 96.56 billion expected by LSE. Alphabet’s revenues grew by 12% in general compared to the year a year ago, while his YouTube advertising business, search businesses and services services slowed down year after year.
Alphabet also said he plans Spend $ 75 billion on capital expenses As its offers and races against megacap rivals increase to build data centers and a new infrastructure. The figure was much higher than the $ 58.84 billion expected by Wall Street analysts, according to Factset.
The Chief of Finance, Anat Ashkenazi, said that the greatest expenses will help “support our business in Google Services, Google Cloud and Google Deepmind.” He also said that the expense will be used for “technical infrastructure, mainly for servers, followed by data and networks.”
The company expects capital expenses to range between $ 16 billion and $ 18 billion. That was higher than the estimate of $ 14.3 billion of factset.
JPMorgan Doug Anmuth Analyst outstanding costs, revenue by capex and cloud as the “guilty” for the performance after the profits of the action. Mark Shmulik de Bernstein also pointed out that this is the third quarter that the movement of shares is connected to the Google cloud segment.
“If the growth of digital ads is similar to a long -term competition, then Google would sit here comfortably with a strong search and youtube bombs on the street,” Shmulik said.
“But as the game changes to AI putting green, there is little space for an error with a slight failed cloud, a huge capex guide up to $ 75b by 2025, and the lack of comments of processable operational leverage leaves Google 3: Puting for Bogey, “he added.
