On paper, everything is fine for alphabet (Google’s parent company) which displays remarkable results for the last quarter. But, if these figures would make any business of the planet fade with envy, they were not enough for investors who sanctioned the company on the stock market yesterday, where the title dropped by 7 %. Explanations.
The profit flies away, but …
In detail, the Mountain View firm declared a turnover of $ 96.5 billion in the last three months, an increase of 12 % compared to the previous year, but just a little below expectations of Wall Street analysts (96.6 billion). As for the benefit, it amounts to $ 26.5 billion, up 30 %, and exceeds expert forecasts.
That said, the income from the Google cloud division, which is closely scrutinized in the context of the emergence of the generative AI, reached $ 11.96 billion in the fourth quarter, an increase of 30 %. This is less than what observers hoped: $ 12.2 billion.
The tech giant warned that he was going to devote $ 75 billion in 2025 to only 52.5 billion last year in this technology. Above all, it is a question of meeting the growing demand of customers, always in the context of increasing use of language models.
Concerns about AI and Deepseek
The question of Deepseek, this Chinese startup which announced that it had created a very efficient AI for less than $ 10 million, was also in all heads. Quoted by The New York TimesEvelyn Mitchell-Wolf, analyst at the Emarketer commercial research firm, underlines in a note: “Cloud’s disappointing results suggest that the momentum fueled by AI could start to weaken at the very moment when Google’s closed model strategy is questioned by Deepseek”.
Sundar Pichai, managing director of Alphabet, himself took a position on this file this Tuesday. The leader begins by congratulating Deepseek. However, this will not result in a change of strategy from the company which will invest massively to serve billions of consumers through its products and companies using the Cloud.
As emphasize The echoesthe rise of generative artificial intelligence also raises an essential question in Google. Should he really accelerate on this technology that threatens his core business: the sale of online advertising? These tools allow you to get around the advertising links associated with search results by exchanging with the chatbot.
