Alphabet, Google's parent company, saw its stock drop by over 6% after reporting Q4 revenues of $96.5bn, slightly below the $96.67bn expected by analysts. However, it exceeded earnings per share expectations, posting $2.15. CEO Sundar Pichai emphasized the company’s focus on AI advancements and operational efficiencies. Despite strong Cloud revenues showing a 30% year-over-year increase, analysts worry that Alphabet may struggle to maintain its competitive edge in light of growing challenges from companies like DeepSeek and OpenAI, alongside increasing antitrust scrutiny affecting its market position.
Alphabet's Q4 revenue of $96.5bn missed expectations of $96.67bn, while earnings per share exceeded forecasts. The company emphasizes AI leadership as critical for growth.
Sundar Pichai highlighted that Alphabet is 'building, testing, and launching products and models faster than ever,' underscoring their commitment to AI and operational efficiency.
Analysts express concerns about Alphabet's slowing revenue growth and competitive challenges, as existing advantages in search could erode due to emerging AI technologies.
Emarketer's Evelyn Mitchell-Wolf noted that Google's search advantages are at risk in a changing landscape driven by antitrust actions and advances in open source AI.
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