Revenues From Google's Cloud, Hardware And Play Units Grow in Q4

"Our growth in the fourth quarter was exceptional - with revenues up 22% year on year and 24% on a constant currency basis", Alphabet finance chief Ruth Porat said. GOOGL had to incur a higher tax rate of 22 percent, compared to 19 percent for the year overall, which affected the earnings of the company.

Porat also said Google had "only begun to scratch the surface" with newer forms of advertising such as mobile search, YouTube and automated ad buying. In line with our assessment in the pre-earnings note, much of the growth was driven by mobile search and YouTube.

Rather than mobile search, Pivotal expects product innovations like Customer Match and the establishment of marketing technology products to grow Alphabet's market share over time. That would mean that the stock has the potential to deliver more than 15 percent upside potentials and reach $1000-club stocks in a year's time.

But Google faces a different challenge in another area of the video business: developing strong, subscription-based businesses to rival Netflix and paid music streaming services. The company's costs also tapped higher as it was invested in talent and the core business, according to CNBC.

Google's "other bets" - corporate units such as Verily Life Sciences, Nest and Google Fiber - generated $262 million in revenue in Q4, up 74% from $150 million in Q4 2015.

Mobile ads fetch lower costs-per-click than desktop ads, and Google's cost-per-click has been falling for several quarters.

Formula 1 CEO Ecclestone to Be Replaced by Chairman Chase Carey
The completion of the deal will leave Liberty with little time to make any real changes before the beginning of the F1 season. This week, the sale of the F1's commercial rights to the US company Liberty Media was approved by FIA.

Google's "other revenue" segment, which includes Google Play, cloud computing and hardware, rose 62% to $3.4 billion in the fourth quarter, in part propelled by sales of Google's new Pixel smartphone and smart speaker Google Home.

We now estimate that PC search ads, mobile search ads and YouTube ads contribute over 60% to the firm's value.

In the past year, Google stopped expanding its city fiber project amid rumors of the project's possible sale to an Internet service provider, and even the head of Project Wing, the drone delivery effort, stepped down and some project members were cut or moved to other projects.

Bloomberg recently reported that Alphabet sold an estimated 1 million Pixels last quarter; the company doesn't provide such details.

Evercore analyst Ken Sena expected $808 million in Google-branded hardware revenue in the quarter, with Pixel and Home contributing roughly half of the revenue.

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