Alphabet: Google Cloud revenue up 103% to $30.7 billion, quarterly capital spending $51.4 billion; shares fall after the report
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Google's cloud business is doubling in a year on SI demand, but the market is looking at profit and at how much money goes into hardware.
According to Alphabet's report, third-quarter revenue was $127.6 billion (+25%), operating income $40.6 billion, net income $26.2 billion and earnings per share $2.12. Google Cloud revenue rose 103% to $30.7 billion, and the cloud unit's operating income was $11.1 billion; the company ties the growth to demand for SI infrastructure and for TPUs. Sundar Pichai: "Google Cloud revenues grew 103%, powered by huge demand for our SI infrastructure." Capital expenditures were $51.4 billion for the quarter and $132.0 billion for nine months. The report also shows an $8.7 billion loss on equity securities. According to Semafor, Alphabet shares fell about 7% in after-hours trading on profit below forecasts and spending on SI.
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