Google Announces profits fro the last quarter of 2016
Internet advertising has once again kept Alphabet-Google’s parent company- in good shape. With more than a $26billion in revenue, the company has seen a 22% rise in its overall revenue in comparison to the same period the previous year. This has given way to $5.2 billion in profits for the last quarter of 2016 as compared to $4.92 billion for the same period in 2016. Despite the rise in profit, not all of Alphabets bets are paying off.
According to the report, much of the revenue is from advertising with the rest from what google likes to call as “other bets”. The overall revenue from the “other bets” doubled to $292 million for the final quarter of 2016. Alphabet is however confident to keep spending on these efforts which include a wide range of programs.
They include Waymo (self-driving vehicles), smart home (Nest) and Google fiber (speed Broadband Company) among others. Alphabet’s list of “other bets” has a shrinking loss slip of a 2.9 billion which is a slight decline from the previous years. Google says that these ventures have not spiraled out of control as the profile has been increasing day by day.
Ruth Porat who is the CFO of Alphabet has been quoted saying “Our growth in the fourth quarter was exceptional—with revenues up 22 percent year-on-year and 24 percent on a constant currency basis. This performance was led by mobile search and YouTube. We’re seeing great momentum in Google’s newer investment areas and ongoing strong progress in Other Bets,”
The rise in profit has however not reflected in the money market as Google’s share price fell by almost 3.5% in the aftermarket. Google has kept control of the internet as the default search engine with over 40,000 queries every second. This translates to about 3.5 billion searches per day.