Alphabet shares fall as Q4 revenue falls short of expectations
Published: 16:18 04 Feb 2025 EST
Shares of Alphabet Inc (NASDAQ:GOOG) plunged almost 7% afterhours as it posted a revenue miss for the fourth quarter and announced ambitious capital spending plans for 2025.
Revenue of $96.5 billion marked a 12% year-over-year increase but missed Street estimates of $96.7 billion.
Services revenue was up 10% to $84.1 billion while Cloud revenue soared by 30% to $12 billion, attributed to growth in Google Cloud Platform.
Earnings per share (EPS) was up 31% from the year-ago quarter at $2.15, ahead of the consensus of $2.13.
Alphabet also said it expects to spend approximately $75 billion in capital expenditures in 2025, significantly higher than the $59 billion Street consensus.
“Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies,” Alphabet CEO Sundar Pichai said in a statement.
“Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses.”
Shares of Alphabet traded down 6.8% at about $208 shortly following the release of its earnings report.
