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Google 's parent company, Alphabet, said its cloud computing business had contributed to revenue growth, which reached $ 36.3 billion, up 17% from a year ago. ;other. But the stock has fallen as earnings and profits have not responded to Wall Street's expectations.
Ruth Porat, chief financial officer of Alphabet and Google, has awarded the "mobile search, YouTube and cloud" the "robust growth," according to the press release on the group's results. Profit growth was slower than last year, which generated $ 31.1 billion in revenue, up 26% year-over-year. Alphabet posted a net profit of $ 6.657 billion and a diluted earnings per share of $ 9.50.
Analysts expected a turnover of 37.34 billion dollars and an estimated profit of 10.58 dollars per share, according to Yahoo Finance.
The Alphabet action has been trading at $ 1,203.20 after Monday's hours, down more than 7%.
Google does not break the cloud revenues, which are included in the "other income" category. "Other revenue" also includes Google hardware, such as Pixel Phone and Google Home. This category generated revenues of $ 5.4 billion, up 25% annually.
Google at the Mobile World Congress 2017.
As a comparison, Microsoft recorded an increase in revenue of 76% Azure and Amazon Web Services, 41%. According to Synergy Research, AWS and Microsoft rank first, followed closely by Google (third) and IBM (fourth), according to Synergy Research.
The "other bets" of Alphabet, which include Waymo's standalone startup and health business, Verily, generated a $ 170 million turnover, up 13% from compared with the previous year, but lost 868 million dollars.
Alphabet is always an advertising activity with some problems, especially in the cloud. The ads account for $ 30.7 billion in the company 's business turnover, up 15% from one year to the next, compared with 24% growth in 2018.
The winning call script from Google for the first quarter:
* The ad deceleration has nothing to worry about
* It's just the transition to new advertising products
* We can not tell you anything about these new advertising products, not even their general usefulness
* If we continue to say that machine learning is enough, will that help?– Alexei Oreskovic (@lexnfx) April 29, 2019
Google's margins were undermined by a $ 1.7 billion fine imposed on Google by European regulators last month for abusing the dominance of its search engine and limiting competition.
Why is it important
Google is a partner, a driver of demand and – to a small but alarming degree – a competitor of telecom operators, cable operators and other service providers. Video traffic accounted for 75% of all Internet traffic in 2017 and is expected to grow to 83% by 2022, according to Cisco's annual visual networking ranking. Much of this traffic comes from the YouTube video – and Stadia's streaming game service provided by Google could dramatically increase demand for videos.
The growth of Google's advertising activity is slowing down, but the company is expressing great confidence in the cloud. If trusted, service providers can turn to businesses that demand greater connectivity to Google's cloud. They will want to badociate with this. And while service providers are looking to move their network control planes to the cloud, Google is a potential landing place.
And, finally, Google is taking steps to become a possible competitor in the telecommunications sector. In addition to its long-standing Google Fiber project, Google has recently expanded its networking and virtual private networking capabilities to connect businesses to its cloud. And Google also provides a fixed wireless connection. Google says it does not compete with operators and sees them as partners.
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– Mitch Wagner 
Managing Editor, Light Reading
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