Google's parent company Alphabet has reported quarterly earnings that exceeded expectations, as the company raked in cash from online ad sales while facing lawsuits claiming it abuses its market power.
Alphabet stock rose nearly 7 percent in after-hours trading on Tuesday, as the company reported fourth-quarter revenue of $75.3 billion, versus the $72.2 billion expected on Wall Street.
Total Google revenue was $74.9 billion, above estimates of $71.652 billion.
Google generates more revenue from internet ads than any other company, but has been accused in court filings of deceiving advertisers and publishers to reap windfall profits.
Alphabet stock rose nearly 7 percent in after-hours trading on Tuesday, as the company reported fourth-quarter revenue of $75.3 billion
The company's third-straight quarter of record sales reflects the growth of ad-laden Google services such as internet search, email and YouTube video streaming, since the pandemic made hybrid work customary across much of the world.
'It’s important not to beat around the bush where Alphabet is concerned. The scale of its combined advertising businesses cannot be overstated,' said Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown.
'If you own a business in today’s world, chances are you will need to pay to get that marketing material in front of Google or YouTube’s users,' she added.
Google had said that during the third quarter it lost some sales because companies running low on product trimmed marketing and new iPhone privacy measures curtailed its ability to track users online.
The company also announced on Tuesday a 20-for-one stock split that would come in July if approved by shareholders.
In the fourth quarter, the company's advertising revenue rose 32.5 percent to $61.2 billion, compared with the average estimate of $57.1 billion.
Top rival Meta Platforms Inc, owner of Facebook, reports financial results on Wednesday, including for the first time a breakdown of how its Reality Labs unit is faring compared with its advertising business.
Others including Amazon and ByteDance's TikTok have been taking small pieces of Google's share of the global advertising market.
Though market forecasters expect the
