SAN FRANCISCO (Reuters) – Alphabet Inc’s (GOOGL.O) new Chief Executive Sundar Pichai unveiled sales figures that investors have long demanded, but shares fell 5% as Google’s advertising business and the new data about YouTube and Google Cloud broadly disappointed.
Pichai had sought to counter slowing revenue growth in the company’s main advertising business by pointing to the Silicon Valley firm’s younger units.
But Pichai’s reveal that Google’s YouTube video streaming unit is generating ad revenue at a pace of $15 billion annually put it below rough estimates as high as $25 billion.
Divulging 53% quarterly revenue growth for Google’s cloud services compared with a year ago meant it grew slower than the business it is trying to catch up to, Microsoft Corp’s (MSFT.O) Azure. It reported a 62% quarterly rise in sales last week, or 39% when considering some cloud services Microsoft sells through other units.
While financial analysts applauded the new transparency from…
Source Reuters Tech News