Alphabet CEO and Google Sundar Pichai in Warsaw, Poland on March 29, 2022.
Mateusz Wldarczyk Norfuto Gety pictures
alphabet The shares decreased by more than 7 % before Wednesday, after the search giant for revenue forecast decreased in the fourth quarter of Wall Street and announced the large spending plans to build continuous artificial intelligence.
The company topped profit estimates by 2 cents per share. Revenue amounted to 96.47 billion dollars, behind 96.56 billion dollars expected by LSEG. Alphabet’s revenues grew by 12 % in general for the past year, while its advertising sector slowed on YouTube, search and services work throughout the year.
Alphabet also said that it plans to spend $ 75 billion on capital expenditures, as it builds its offers and AI’s races against its large competitors to build new data and infrastructure centers. This number was much higher than $ 58.84 billion expected by Wall Street analysts, according to Fastesst.
“The highest expenditures will help” support our business growth through Google, Google Cloud and Google DeepMind. ” She also said that spending will go towards “technical infrastructure, primarily for servers, followed by data and network centers.”
The company expects the capital expenditures will range between 16 billion dollars and 18 billion dollars. This was a $ 14.3 billion estimate of FactSet.
Doug Animouth, JPMORGAN analyst, costs and revenues and CAPEX and Cloud as “perpetrators” for post profit performance. Mark Shmoulik from Bernstein also indicated that this is the third quarter that the stock movement connects to the Google Sector.
“If the growth of digital ads is closer to a long drive competition, Google will be comfortably here with strong search and YouTube bombs below the corridor,” said Shmoulik.
“But with the game turning to Amnesty International that puts green, there is no big way to make a mistake with Miss Cloud Sares, a huge Capex guide up to $ 75 billion for 2025, and the absence of operational operation comments leave Google 3- Ghost,” He added.
