Shares in Alphabet, Google’s parent company, rose nearly 8% in expanded trading on Tuesday after the company reported fourth-quarter earnings, beating analysts’ expectations and showing a strong return for the Growth in the core business with advertising

Alphabet’s revenue rose 23% on a year-on-year basis for the quarter, according to a statement, which is stronger growth than the fourth quarter of last year (17%) and shows that Google’s advertising business was after a sharp slowdown in the second quarter of the recovered well last year

Advertising revenue for the fourth quarter was $ 4620 billion, up 22% from $ 3793 billion in the same quarter last year, a sharp turnaround from the second quarter when the Covid pandemic broke out Encouraged advertisers to cut back on their spending, resulting in an 8% annual decline in ad revenue and Google’s first year-over-year revenue decline

YouTube ads that grossed $ 689 billion in the fourth quarter showed a 46% jump from that time last year when it made $ 472 billion there was also a jump in viewers and prolonged viewing Watching Videos, Executives Said “We’re now reaching more 18- to 49-year-olds than all linear TV channels combined,” said Philipp Schindler, Google’s chief business officer, and more than 100 million people are streaming YouTube from their televisions

YouTube is seeing particularly strong growth in “direct response” ads that encourage consumers to take immediate action, such as: B. download an app or buy something from an ecommerce website that advertising space has remained more resilient over the past year, while branding campaign spending has been harder hit during the pandemic

“Our direct response business on YouTube was virtually non-existent three years ago. Now it’s one of our largest and fastest growing advertising offerings on YouTube,” said Schindler

Alphabet also brought operating income out of its cloud business for the first time: the company lost $ 561 billion in the full year and $ 124 billion in the fourth quarter, showing that the company is still in investment mode, in contrast Amazon’s cloud business generated operating income of $ 1353 billion last year and $ 3.56 billion in the most recent quarter

“I am very pleased with the progress here and we will continue to make disciplined investments to scale the business and improve profitability,” said Sundar Pichai, CEO of Google and Alphabet, in a call-to-profit

Google Cloud revenue grew 47% year-over-year, “with GCP growth well ahead of the overall cloud growth rate,” added Pichai. The company’s cloud business has billions of dollars in deals in 2020 finished, he said

CFO Ruth Porat said the cloud unit will continue to hire new people in sales and tech.

The company’s Other Betting segment, which includes life science division Verily and self-propelled Waymo division, grossed $ 196 million in the fourth quarter and $ 657 million for the year in 2020

Google’s “Other Income” was $ 667 billion in the fourth quarter That’s $ 526 billion Q4 2019 Executives said the company has completed its Fitbit acquisition and will move its financial results under the “Other” segment. will appear

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World News – CA – Alphabet sales up 23% as core advertising business shows strong growth