Alphabet will report its quarterly profits on Tuesday, as investors focus on spending artificial intelligence and the impact of the slower growth in advertisements and cloud revenues.
Estimates collected by LSEG indicate that Alphabet’s revenues for the fourth quarter are expected to rise by 11.9 % to 96.6 billion dollars, less than the previous quarter growth.
Capital expenses of 2024 are estimated at about $ 50 billion, with additional spending for 2025 to support cloud expansion and research features driven by artificial intelligence. AI’s investments in the company come amid a competition from new participants, including the start of the Chinese Deepseek, which launched low -cost artificial intelligence models last month.
Google Cloud revenues are expected to increase by 32 % in the fourth quarter, a decrease from growth of 35 % registered in the previous quarter. Azure Cloud Business from Microsoft has announced a slowdown in December, which raised concerns whether Google Cloud will face similar challenges.
Alphabet and other business revenues are expected to increase by 11.2 %, after an increase of 12.2 % in the third quarter, according to Alpha’s visual estimates. The company continues to compete with Amazon and Social Media platforms like Tiktok to search for the advertising market share.
The spending of political advertisements on the American presidential elections may have contributed to the rise in advertising revenues in the fourth quarter. However, Meta’s expectations in the first quarter cautiously raised concerns about the broader advertising market, as economic uncertainty and possible global definitions are still factors.
Alphabet shares increased by about 7 % this year after getting 35 % in 2024, reflecting the investor’s interest in the AI’s growth growth. Analysts will evaluate whether Google Cloud’s artificial intelligence services can maintain growth without affecting the basic cloud computing work, as shown in the Microsoft Modern Doveard Report.
