Alphabet Inc. released brilliant news for investors last week, just days after their quarterly earnings announcement. As of last quarter, they announced another record-breaking net income of $28.20 billion — an impressive 20% jump from last year. In 2025, the company hasn’t $75 billion planned for capital expenditures alone. This big commitment is all about ramping up its artificial intelligence engineering talent and increasing production of its Cloud products and services to the very high projected demand.
During their quarterly earnings call, Alphabet announced that, thanks to the pandemic, its advertising revenue jumped to $71.34 billion. This was a record-shattering leap of 10.4% over last year’s $64.61 billion in revenue. The search unit powered astonishing growth for the company. On a more encouraging note, it did rake in a staggering $54.19 billion in revenue for the quarter. These results are indicative of Alphabet’s expansive market dominance and continued funneling of resources into innovative technology.
Alphabet’s “Other Bets” segment that includes Waymo and Verily lost $1.25 billion. This loss is marginally greater than the $1.13 billion loss we saw a year ago. As you can see, this segment saw a big revenue increase. It imposed $373 million in fines, a slight increase from the previous year’s $365 million. These mixed results from this segment showcase both the challenges and opportunities that lie ahead as Alphabet continues to pursue new, innovative, high-risk, high-reward ventures.
As a result of the heightened demand for its services, Alphabet is increasing its capex guidance. Yet they’ve set the bar high, at $85 billion. This updated number further highlights the company’s commitment to building out their infrastructure and increasing their technological innovations, especially in AI. Without significant investment, Alphabet’s current and future growth would be impossible. What’s more, it will enable the company to lead its industry as we all navigate the Fourth Industrial Revolution.
Though Alphabet reported a solid earnings beat, its shares fell more than 1% in after-hours trading. This drop points to investor jitters amidst losses from the company’s “Other Bets” division. Analysts everywhere are keeping a hawk eye on just how Alphabet addresses these challenges. They obviously don’t want to see the company squander its advertising and Cloud advantages.