Google revenues buoyant but Amazon threat creeps closer
Google parent Alphabet has posted a positive set of fourth-quarter financials after generating $39.27bn in revenues, of which $32.6bn was accrued from advertising, topping the equivalent third quarter figure of $28.95bn.
Google's revenues are buoyant but the cloud of Amazon looms large over the business
Overall revenues surged 22% over the quarter, generating a profit of $8.9bn, although costs also spiraled with expenditure escalating by 80% to $6.85bn – eating into profit margins as a whole.
This latter trend is attributable in part to Google’s move into hardware via its Pixel phone and Home smart speaker but it's also down to increased investment in cloud computing to see off the threat posed by Amazon and Microsoft.
Amazon, in particular, is proving to be a thorn in Google’s side as it increasingly muscles in on the advertising sector. Last year, it generated $10bn in ad revenues sector; up 95% on 2017.
Internationally, in 2018, Google saw its revenues rise by 20% in Europe and 29% across Europe, the Middle East and Africa, propelled in part by the relative strength of the euro and pound.
Google is facing an increasingly onerous regulatory environment in Europe, most recently after being ordered to review potentially 'anti-competitive' ad blocking practices.
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