As all analysts predicted, Alphabet’s earnings remain the same, which means that they are good. We must say that it is almost boring how good Alphabet goes year by year.
Key Points
On the other side, Apple also remains profitable, but we are curious to see if smartphone buyers may or may not be moved by the iPhone’s latest design.
Moreover, Amazon seems prepared to abandon quarterly profits in order to invest even more in faster delivery times or probably in another huge data center. As for Facebook, this company is still young enough, which means that a little volatility is not out of character.
But, the fourth-quarter results announced this week by Alphabet, which is known as being Google’s parent company, proved once again that it is a real moneymaker consistency. We must say that the company’s revenue in the quarter rose 22 percent to 26.05 billion dollars.
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This means that Alphabet managed to beat analysts’ expectations. To be added that the net income was 5.32 billion dollars, up from 4.91 billion dollars a year earlier.
What makes this company so profitable?
Well, the heart of this company’s earnings is still the search engine.
While a customer can delay an iPhone purchase or shop somewhere other than Amazon, Google’s search engine is still an indispensable tool for people who are using the Internet.
If in the first year, when people moved to mobile devices, analysts thought that Google’s search business will suffer, it seems that this shift has only strengthened the company.
Advertising revenue growth was driven by mobile search, with ongoing strength in YouTube and programmatic,” has declared Ruth Porat, Alphabet’s Chief Financial Officer.
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To be added that Alphabet received 95% of all search-ad clicks on mobile devices in the quarter, according to Merkle Inc., a digital-marketing firm.
For example, on the YouTube front, Sundar Pichai, Google’s Executive, added a campaign for the NBA’s opening night that employed “real time” behind-the-scenes clips in ads.
These clips gained 19 million people on the web. This is just an example of the platform’s burgeoning potential. According to NetMarketShare.com, Google’s market share on desktop search is approximately 79 percent, but it is above 90 percent on mobile devices.
Another interesting thing is that Google ads increased 37 percent in the quarter, but what advertisers paid for each click decreased 14 percent. Moreover, Google is also present on many of the internet’s most valuable proprieties.
For example, places where people go to stay in touch on email, look for entertainment or find driving directions. But, one of Google’s most successful platforms is YouTube. Here, clicks on Google’s ads are growing faster than on its own search engine.
The company declared that a billion people watch YouTube every month, viewing hundreds of millions of hours of its videos very day. Google’s chief executive, Sundar Pichai, declared that the company’s assets like YouTube, search, Google Play and Maps, constituted “prime time in the mobile era.”
“We’ll do more in 2017,” Pichai added in the end. YouTube Red, which is a subscription service, is probably the biggest bet for Google this year.
