Google's parent organization, Alphabet Inc, has announced its fourth-quarter earnings for the year 2020, worth $22.30 EPS. The Earning Per share has increased by 45.3% year-on-year, surpassing the analysts' estimations of $15.91.
Similarly, the revenue has also grown by 23.5% making $56.90 billion in this quarter. The analysts have forecasted revenue of $53.13 billion with 15.7% growth. The traffic acquisition costs have made up to $10.47 billion, youtube advertisements climbed to $6.89 billion and Google Cloud revenue rose to $3.83 billion in Q4 2020. Estimations made by analysts were $3.81 billion, $6.11 billion, and $9.32 billion, respectively. For the final quarter, advertisement income hit $46.20 billion, i.e., 22% up from $37.93 billion made in Q4 2019.
Alphabet Inc. is a US-based multinational online advertising service provider formed by Google's restructuring on October 2, 2015. Headquartered in Mountain View, California, Alphabet also serves in Lating America, the Asia-Pacific, Africa, the Middle East and Europe. The business administers through divisions of Google and Other Bets.
By revenue, Alphabet ranks as the fourth-largest technology firm worldwide and comes under the most valuable organizations globally. It has also been listed on the National Association of Securities Dealers Automated Quotations (NASDAQ) with a $1.408 trillion market capitalization.
The Other Bets division of the venture, which includes the Verily Life Sciences Unit and Waymo Self-Driving Unit, pulled in $196 million in the final quarter and $657 million throughout the year. The section reported an operating loss of $4.48 billion last year. Google's "other revenue" was also valued at $6.67 billion in Q4 2020, which has risen from Q4 2010 worth 5.26 billion dollars.
In 2020, Alphabet Inc. (GOOGLE) had seen its stock increase to almost double the market, apparently unbothered by global disruptions caused by the COVID-19 pandemic.
As per the CEO of Alphabet and Google, Sundar Pichai, the Google Cloud segment has achieved various billion-dollar deals with a growth of 47% in the full year. The cloud market is multiplying, with significant competitors competing for cloud clients, such as Alibaba Group Holdings Ltd. (BABA), Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Moreover, analysts predict that the Google cloud unit will carry on with its rapid growth in 2021.