(Bloomberg) — Google parent Alphabet Inc. posted fourth-quarter revenue that missed analysts’ expectations as growth in its cloud business slowed. The shares fell more than 8%.
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Sales, excluding partner payouts, were $81.6 billion, Alphabet said Tuesday in a statement. Analysts had projected $82.8 billion, according to data compiled by Bloomberg.
The company also projected $75 billion in 2025 capital expenditures, far exceeding the $57.9 billion that analysts expected, related to a buildout of data centers and infrastructure for artificial intelligence. That led to a more than 6% boost in Broadcom Inc. shares.
Investors have urged Alphabet to demonstrate that it is maintaining momentum across its businesses as it spends more heavily on AI, and as competition in that market intensifies. Google’s cloud unit had benefited from the AI boom as startups required more computing power for their work, but sales of about $12 billion in the period ended Dec. 31 missed estimates. Google Cloud still trails behind Amazon.com Inc. and Microsoft Corp. in size.
Alphabet fell as low as $189.40 in extended trading, after closing at $206.38. The shares have gained 9% so far this year.
(Updates with capex in the third paragraph)
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