Read at Yahoo Finance
Google parent Alphabet's stock dropped after the company reported disappointing fourth quarter earnings. Revenue, excluding traffic acquisition costs, was $72 billion, higher than the previous year, but ad revenue missed expectations. However, the company's cloud business showed growth, with Google Cloud revenue reaching $9 billion, a 26% increase year-over-year. Alphabet has been working to gain market share in the cloud computing market.
Revenue, excluding traffic acquisition costs for the third quarter, was $72 billion versus expectations of nearly $71 billion. That's higher than the $63.12 billion the company generated during the same period in the prior year. But investors seemed to focus on the advertising miss.
During an analyst call, Alphabet CEO Sundar Pichai and CFO Ruth Porat emphasized the importance of streamlining the business for cost savings and efficiency. Pichai mentioned winding down non-priority projects, while Porat highlighted efforts to remove organizational layers.
"Across different teams we have wound down some non-priority projects which will help us invest and operate well in our growth areas," said Pichai. Porat said the company is focused on removing organizational layers to bo.