GOOG Reported an Unpleasant Earning with All Sectors Underperform Expectation
The company reported Q4 revenue of $76.05b, up 1% YoY, below Analysts estimated $76.53b. EPS $1.05, less than estimated $1.18. YouTube revenue $7.96b, less than estimated $8.25b. Cloud Service revenue $7.32b, estimation was $7.43b. Operating Margin continue to slide, from 29% a year ago down to 24% this quarter. Only Customer Acquisition Cost beats estimation, $12.93b, estimation was $13.32b, about 17% of revenue.
Google $Alphabet-A(GOOGL.US$’s current focus is on restructuring cost. Q4’s operating expense rose 10%. The company said despite layoffs continue to increase, but increase in lawsuits expense caused overall cost to rise. But besides this, the company stopped giving further comments on cost, makes it questionable whether the company is intending or not intending to manage its cost. For 2023 Q1, the company expect layoff would bring $1.9b-2.3b of extra expense, and offices restructuring will add additional $500 million cost.
Another thing investors was curious is Google’s response to the threat of ChatGPT. Earlier news report stated that Google as recalled back the two founders, but CEO did not give any clear information, rather he emphasized the company’s AI strategy and would introduce it to Google Search and Google’s new cognitive services soon. Meaning that Google’s own “ChatGPT” will be online soon.
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风生水起 : YouTube ？