Alphabet makes less profit than expected | BrightTitan
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Alphabet makes less profit than expected

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Alphabet makes less profit than expected

The mother board company of the Google, the alphabet, is slightly below the forecasts. However, sales can grow strongly. Google’s parent company Alphabet did not meet the expectations of the analysts. Alphabets net profit grew to $ 5.33 billion ($ 7.56 per share) in the fourth quarter of 2016. This was announced by the company on January 26, 2017, following the close of trading on the New York Stock Exchange. In the same period last year, earnings were $ 4.92 billion ($ 7.06 per share).



Prior to special items, earnings were $ 9.36 per share, with analysts forecasting $ 9.64 per share. The company’s revenues increased to $ 26.06 billion, surpassing analyst estimates of $ 25.26 billion. The stock fell in the after-trading trade to 834 US dollar and went off with 856.98 US dollar at the Nasdaq from the trade.


Weaker growth in the core business?


This could be a sign that the growth in the core business will not be as strong. But Google’s ad revenue grew by 17.4 percent to 22.4 billion US dollars.


However, their division’s other bets increased its revenues from 150 million US dollars to 262 million US dollars. The operating loss decreased from 1.21 billion US dollars to 1.09 billion US dollars. This area includes the Google Fiber fixed network and the home automation products area Nest.



Google Fiber will stop or suspend expansion in ten cities and dismiss workers. Nine percent of employees will lose their jobs. The company did not agree to continue expanding beyond ongoing projects.


Nest offers surveillance cameras and a networked smoke detector. The smart home appliances are also to be introduced in Austria, Italy and Spain. To date, Google has offered only in Belgium, France, UK, Ireland, the Netherlands, Canada and the USA.

Jack Goodman

Founder & CEO of BrightTitan

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