Alphabet sees record ad growth

 

Google’s parent company Alphabet saw record revenues for the second straight quarter despite the pandemic. Google’s advertising business including YouTube, accounted for 81 per cent of Alphabet’s $56.9bn in fourth-quarter sales up 23 per cent compared with last year. The Cloud unit also saw strong growth as sales were $13.1 bn for the full year up 46 per cent from 2019. Alphabet said Google Cloud posted an operating loss of $1.24bn in the fourth quarter and $5.6bn for 2020, a 21 per cent wider loss than in 2019.

Google who generates their big chunk of revenue from internet advertising than any company in the world, has long faced questions over whether it can spin the cash from its advertising business into a new profitable venture.

Alphabet’s quarterly profit rose 43 per cent to $15.2bn, soaring their share up 6 per cent to $2, 035 on Wall Street. The stock also has risen by 9.5 per cent so far this year.

But watch out, Google’s global internet advertising market is shrinking as Amazon.com becomes a bigger threat and China-focused vendors such as Alibaba enjoy a faster rebound from the pandemic. Google is estimated to capture at least 30 per cent of the market in 2021.

Google which has suspended “free speech” social network Parler, a Twitter alternative app. one of the most popular social media platforms for right-wing users, from its Play Store over its failure to remove “egregious content” has proved popular with people banned from Twitter. Parler launched in 2018, has proved particularly popular among Trump supporters and right-wing conservatives who frequently accused Twitter and Facebook of unfairly censoring their view.