Alphabet, parent company of Google, has made public the economic and financial results referred to the fourth quarter of 2016, announcing earnings of 26.000 million dollars, which represents a 22% more compared to the same period of the previous year.
According to the company, much of these results are due to the "big boost" given by Google's new hardware and is that these figures include for a very large part of the period the sales of the Google Pixel and Pixel XL devices, and Google Home, which were released successfully during their first Christmas sales period. In fact, the success has been such that it would have exceeded analysts' expectations and now, the stock is insufficient to meet the demand.
As we said at the beginning, Alphabet's revenues grew by 22% compared to the 21.300 billion dollars in the fourth quarter of 2015, which represents a net growth of $ 5.300 billion for this quarter.
However, the company has not reported separately Google's hardware sales, which are grouped together with Play Store sales, and more in the "Other income" section which, compared to the previous year, has experienced a growth of 62% reaching 3.400 million dollars, compared to 2.400 million in the last quarter.
Ruth Porat, CFO of Alphabet, says “a lot of momentum in Google's new investment areas and strong progress in Other Bets”.
But this last section continues to lose money, despite the fact that revenues have increased compared to the previous quarter. Revenues were $ 262 million with an operating loss of $ XNUMX billion.
Alphabet continues to make adjustments and movements regarding its subsidiaries. The self-driving car project bypassed the company called Waymo as testing continues with the latest Chrysler vehicle; Project Wing is on hiatus and the Internet Project Titan was shut down, as the satellite division Terra Bella is being sold.