Alphabet is a parent company of Google. The key business of Alphabet is Google Cloud and YouTube. For the first time in the history of the company, the company allowed its investors to cast a look over the revenues generated by these two of its biggest companies Google and YouTube. As per a report published by the Alphabet, YouTube generated a revenue of $15 billion in 2019 which was $11 billion in 2018. However, Google Cloud generated $8.9 billion for the year 2019. However, the revenue of Google Cloud was $5.8 billion for the year 2018. Google Cloud collected 53% higher revenue in 2019 than that of the previous year.
However, the earning of the Alphabet soared from $39.3 billion in 2018 to $46.1 billion in 2019. Furthermore, the net income of the company also increased from $8.9 billion to $10.7 billion over the same period.
It is worth mentioning that this is the first earning report after Sunder Pichai took over as CEO of the company. However, reports are up with mixed and bit different results as compare to what was expected. The company’s profit is beyond the expectations of analysts while revenue was below estimation. So, Alphabet’s shares are off around 4 percent in post-hours trading on stock exchanges.
As per saying of CEO of the company, Mr. Sundar Pichai,
When You look at the fact that people are consuming a lot of goods and services as part of their experience on YouTube, How can we create better commerce experiences also is a big opportunity for us
As per the sayings of the analysts, Alphabet should focus more on YouTube and Google Cloud and put less emphasis on its star product Google Search as it has been lumbering along.