Latest news with #JesseCohen
Yahoo
05-02-2025
- Business
- Yahoo
Google's rising holiday's season ad sales aren't enough to ease worries about AI letdown
SAN FRANCISCO (AP) — Google's digital ad sales continued to grow at a healthy clip during the holiday season, but that wasn't enough to offset investors' worries about whether its big bet on artificial intelligence will be lucrative as once envisioned. The October-December results released Tuesday by Google parent Alphabet Inc. showed the company is continuing to reap even more profits from its dominant search engine and other peripheral services. Alphabet earned $26.5 billion, or $2.15 per share, during last year's final quarter, a 28% increase from the same time during the previous year. Revenue rose 12% from the previous year to $96.5 billion. The earnings eclipsed analyst forecasts of $2.13 per share, but the revenue fell slightly below projections, according to FactSet Research. More importantly, revenue growth in the Google Cloud division tethered to the AI craze wasn't as robust as had been anticipated. That letdown contributed to a more than 8% drop in Alphabet's stock price after the numbers came out. The downturn reversed a recent rally that had elevated Alphabet's shares to a new all-time high earlier Tuesday during the regular trading session. 'The reaction underscores concerns that rivals like Microsoft, with its OpenAI partnership, are better positioned to convert AI hype into revenue,' said analyst Jesse Cohen. But the AI-generated overviews that Google has been increasingly displaying in at the top of its search results appeared to be helping to bring in more advertising. Google's ad sales climbed 11% from the previous year to $72.5 billion to exceed analyst estimates. 'The early signs suggest that AI is working for Google,' said Jim Yu, CEO of BrightEdge, which helps websites rank higher in search results. "What it does for Google is keep more of the digital experience happening within its search engine. And by the time they send someone to another site, shoppers and readers have already gotten further down their journey. So that visitor is worth a lot more to an advertiser.' But Google also has spending billions of dollars on its AI expansion, a huge investment that some investors are questioning after t he Chinese startup DeepSeek found an effective way to deploy similar technology at a fraction of the cost. Alphabet is expecting its ongoing AI expansion to increase its capital from about $60 billion last year to $75 billion this year. Alphabet CEO Sundar Pichai sought to reassure investors all that spending will pay off during a Tuesday conference call by emphasizing the way AI is helping to boost Google's fortunes by attracting more search traffic and making other services more popular. 'The company is in a great rhythm and cadence, building, testing and launching products faster than ever before,' Pichai said. Before the fourth-quarter results came out, Google made a change that in its AI principles signaling it may be more open to selling the technology in areas that it had previously indicated it would avoid. The revised principles removed previous commitments not to deploy AI in weaponry or surveillance that had been in place since 2018. Pichai didn't address the change during Tuesday's conference call and Google didn't immediately respond to a request for comment. The uncertainty over AI isn't the only worry hanging over Google. The Mountain View, California, company also is facing a regulatory crackdown in the U.S., by far its most lucrative market, raising the specter that its revenue could be undercut. After weighing the evidence presented during a high-profile trial, a federal judge last year declared Google's search engine is an illegal monopoly — a decision that has opened the door for regulators to propose forcing the company to sell its Chrome web browser. Court hearings on how Google should be punished for its abuses in the search market are scheduled to begin in April, with a decision anticipated before autumn. Besides the legal assault on its search engine, Google also has been ordered to tear down the barriers protecting its Play Store for Android smartphone apps. That ruling is currently on hold while Google appeals. Google is also awaiting a ruling in antitrust trial in Virginia revolving around the technology underlying its digital ad network. Sign in to access your portfolio
The Hill
04-02-2025
- Business
- The Hill
Google's rising holiday's season ad sales aren't enough to ease worries about AI letdown
SAN FRANCISCO (AP) — Google's digital ad sales continued to grow at a healthy clip during the holiday season, but that wasn't enough to offset investors' worries about whether its big bet on artificial intelligence will be lucrative as once envisioned. The October-December results released Tuesday by Google parent Alphabet Inc. showed the company is continuing to reap even more profits from its dominant search engine and other peripheral services. Alphabet earned $26.5 billion, or $2.15 per share, during last year's final quarter, a 28% increase from the same time during the previous year. Revenue rose 12% from the previous year to $96.5 billion. The earnings eclipsed analyst forecasts of $2.13 per share, but the revenue fell slightly below projections, according to FactSet Research. More importantly, revenue growth in the Google Cloud division tethered to the AI craze wasn't as robust as had been anticipated. That letdown contributed to a more than 8% drop in Alphabet's stock price after the numbers came out. The downturn reversed a recent rally that had elevated Alphabet's shares to a new all-time high earlier Tuesday during the regular trading session. 'The reaction underscores concerns that rivals like Microsoft, with its OpenAI partnership, are better positioned to convert AI hype into revenue,' said analyst Jesse Cohen. But the AI-generated overviews that Google has been increasingly displaying in at the top of its search results appeared to be helping to bring in more advertising. Google's ad sales climbed 11% from the previous year to $72.5 billion to exceed analyst estimates. 'The early signs suggest that AI is working for Google,' said Jim Yu, CEO of BrightEdge, which helps websites rank higher in search results. 'What it does for Google is keep more of the digital experience happening within its search engine. And by the time they send someone to another site, shoppers and readers have already gotten further down their journey. So that visitor is worth a lot more to an advertiser.' But Google also has spending billions of dollars on its AI expansion, a huge investment that some investors are questioning after t he Chinese startup DeepSeek found an effective way to deploy similar technology at a fraction of the cost. Alphabet is expecting its ongoing AI expansion to increase its capital from about $60 billion last year to $75 billion this year. Alphabet CEO Sundar Pichai sought to reassure investors all that spending will pay off during a Tuesday conference call by emphasizing the way AI is helping to boost Google's fortunes by attracting more search traffic and making other services more popular. 'The company is in a great rhythm and cadence, building, testing and launching products faster than ever before,' Pichai said. Before the fourth-quarter results came out, Google made a change that in its AI principles signaling it may be more open to selling the technology in areas that it had previously indicated it would avoid. The revised principles removed previous commitments not to deploy AI in weaponry or surveillance that had been in place since 2018. Pichai didn't address the change during Tuesday's conference call and Google didn't immediately respond to a request for comment. The uncertainty over AI isn't the only worry hanging over Google. The Mountain View, California, company also is facing a regulatory crackdown in the U.S., by far its most lucrative market, raising the specter that its revenue could be undercut. After weighing the evidence presented during a high-profile trial, a federal judge last year declared Google's search engine is an illegal monopoly — a decision that has opened the door for regulators to propose forcing the company to sell its Chrome web browser. Court hearings on how Google should be punished for its abuses in the search market are scheduled to begin in April, with a decision anticipated before autumn. Besides the legal assault on its search engine, Google also has been ordered to tear down the barriers protecting its Play Store for Android smartphone apps. That ruling is currently on hold while Google appeals. Google is also awaiting a ruling in antitrust trial in Virginia revolving around the technology underlying its digital ad network.
Yahoo
04-02-2025
- Business
- Yahoo
Google's rising holiday's season ad sales aren't enough to ease worries about AI letdown
SAN FRANCISCO (AP) — Google's digital ad sales continued to grow at a healthy clip during the holiday season, but that wasn't enough to offset investors' worries about whether its big bet on artificial intelligence will be lucrative as once envisioned. The October-December results released Tuesday by Google parent Alphabet Inc. showed the company is continuing to reap even more profits from its dominant search engine and other peripheral services. Alphabet earned $26.5 billion, or $2.15 per share, during last year's final quarter, a 28% increase from the same time during the previous year. Revenue rose 12% from the previous year to $96.5 billion. The earnings eclipsed analyst forecasts of $2.13 per share, but the revenue fell slightly below projections, according to FactSet Research. More importantly, revenue growth in the Google Cloud division tethered to the AI craze wasn't as robust as had been anticipated. That letdown contributed to a more than 8% drop in Alphabet's stock price after the numbers came out. The downturn reversed a recent rally that had elevated Alphabet's shares to a new all-time high earlier Tuesday during the regular trading session. 'The reaction underscores concerns that rivals like Microsoft, with its OpenAI partnership, are better positioned to convert AI hype into revenue,' said analyst Jesse Cohen. But the AI-generated overviews that Google has been increasingly displaying in at the top of its search results appeared to be helping to bring in more advertising. Google's ad sales climbed 11% from the previous year to $72.5 billion to exceed analyst estimates. 'The early signs suggest that AI is working for Google,' said Jim Yu, CEO of BrightEdge, which helps websites rank higher in search results. "What it does for Google is keep more of the digital experience happening within its search engine. And by the time they send someone to another site, shoppers and readers have already gotten further down their journey. So that visitor is worth a lot more to an advertiser.' But Google also has spending billions of dollars on its AI expansion, a huge investment that some investors are questioning after t he Chinese startup DeepSeek found an effective way to deploy similar technology at a fraction of the cost. Alphabet is expecting its ongoing AI expansion to increase its capital from about $60 billion last year to $75 billion this year. Alphabet CEO Sundar Pichai sought to reassure investors all that spending will pay off during a Tuesday conference call by emphasizing the way AI is helping to boost Google's fortunes by attracting more search traffic and making other services more popular. 'The company is in a great rhythm and cadence, building, testing and launching products faster than ever before,' Pichai said. Before the fourth-quarter results came out, Google made a change that in its AI principles signaling it may be more open to selling the technology in areas that it had previously indicated it would avoid. The revised principles removed previous commitments not to deploy AI in weaponry or surveillance that had been in place since 2018. Pichai didn't address the change during Tuesday's conference call and Google didn't immediately respond to a request for comment. The uncertainty over AI isn't the only worry hanging over Google. The Mountain View, California, company also is facing a regulatory crackdown in the U.S., by far its most lucrative market, raising the specter that its revenue could be undercut. After weighing the evidence presented during a high-profile trial, a federal judge last year declared Google's search engine is an illegal monopoly — a decision that has opened the door for regulators to propose forcing the company to sell its Chrome web browser. Court hearings on how Google should be punished for its abuses in the search market are scheduled to begin in April, with a decision anticipated before autumn. Besides the legal assault on its search engine, Google also has been ordered to tear down the barriers protecting its Play Store for Android smartphone apps. That ruling is currently on hold while Google appeals. Google is also awaiting a ruling in antitrust trial in Virginia revolving around the technology underlying its digital ad network.
The Hill
29-01-2025
- Business
- The Hill
Meta posts sharply higher Q4 profit, revenue, topping Wall Street's expectations
SAN FRANCISCO (AP) — Meta Platforms Inc. posted sharply higher profit and revenue for its fourth quarter on Wednesday, thanks to higher ad revenue on its social media properties, sending its shares up in after-hours trading even as it forecast increasing expenses on its artificial intelligence efforts. The Menlo Park, California-based company earned $20.83 billion, or $8.02 per share, in the October-December quarter. That's up 49% from $14.02 billion, or $5.33 per share, in the same period a year earlier. Revenue grew 21% to $48.39 billion from $40.11 billion. Analysts, on average, were expecting earnings of $6.76 per share on revenue of $47 billion, according to a poll by FactSet. 'We continue to make good progress on AI, glasses, and the future of social media,' said CEO Mark Zuckerberg in a statement. For the current quarter, Meta said expects revenue of $39.5 billion to $41.8 billion. Analysts are expecting revenue at the high end of that range — $41.68 billion. The company also said it expects expenses in the range of $114 billion to $119 billion, driven by infrastructure costs and employee compensation. Meta had 74,067 employees as of Dec. 31, up 10% from a year earlier. 'Meta's Q4 performance underscores the company's resilience in a still-uncertain digital ad market. By beating both earnings and revenue estimates, they've demonstrated that cost discipline and efficiency gains are paying dividends,' said Jesse Cohen, an analyst with 'However, the real headline is their commitment to aggressive capital expenditures. This signals Meta is doubling down on its AI infrastructure and metaverse ambitions, even as investors grapple with the costs.' Separately, Meta also confirmed a report that it has agreed to pay roughly $25 million to settle a 2021 lawsuit that President Donald Trump brought against the company and Zuckerberg after Trump's accounts were suspended following the Jan. 6, 2021, attack on the U.S. Capitol. Meta's stock rose $13.53, or 2%, to $690.02 in after-hours trading.
Yahoo
29-01-2025
- Business
- Yahoo
Meta posts sharply higher Q4 profit, revenue, topping Wall Street's expectations
SAN FRANCISCO (AP) — Meta Platforms Inc. posted sharply higher profit and revenue for its fourth quarter on Wednesday, thanks to higher ad revenue on its social media properties, sending its shares up in after-hours trading even as it forecast increasing expenses on its artificial intelligence efforts. The Menlo Park, California-based company earned $20.83 billion, or $8.02 per share, in the October-December quarter. That's up 49% from $14.02 billion, or $5.33 per share, in the same period a year earlier. Revenue grew 21% to $48.39 billion from $40.11 billion. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Analysts, on average, were expecting earnings of $6.76 per share on revenue of $47 billion, according to a poll by FactSet. 'We continue to make good progress on AI, glasses, and the future of social media,' said CEO Mark Zuckerberg in a statement. For the current quarter, Meta said expects revenue of $39.5 billion to $41.8 billion. Analysts are expecting revenue at the high end of that range — $41.68 billion. The company also said it expects expenses in the range of $114 billion to $119 billion, driven by infrastructure costs and employee compensation. Meta had 74,067 employees as of Dec. 31, up 10% from a year earlier. 'Meta's Q4 performance underscores the company's resilience in a still-uncertain digital ad market. By beating both earnings and revenue estimates, they've demonstrated that cost discipline and efficiency gains are paying dividends,' said Jesse Cohen, an analyst with 'However, the real headline is their commitment to aggressive capital expenditures. This signals Meta is doubling down on its AI infrastructure and metaverse ambitions, even as investors grapple with the costs.' Meta's stock rose $13.53, or 2%, to $690.02 in after-hours trading.
