US IT giants post record sales in Oct.-Dec

A Peek Into The Markets U.S. Stock Futures Mixed Apple Alphabet Earnings In Focus

Interestingly, the company has recorded a record-breaking $27.27 billion revenue in ads' business, from the total $32.3 billion it earned in the 4th quarter of 2017. For the 2017 year though the company still managed a net income of $12.7 billion. "We expect the year-on-year increases [in TAC] to slow" after the first quarter of this year, CFO Ruth Porat said in an earnings call.

The vast majority of Alphabet's revenue continues to come from Google and its various business, most notably its advertising network, but the company's so-called "other bets" saw revenues rise from $262m (£183m) a year ago to $409m (£286m) in the last quarter.

Alphabet's "Other Bets", which include self-driving vehicle firm Waymo, Google Fiber, the Nest home devices unit and other businesses, logged an operating loss of $1.1 billion on revenue of just $262 million.

Google parent company Alphabet today reported a quarterly loss of Dollars 3 billion as it set aside Dollars 11 billion for taxes on its overseas profits being brought back to the United States.

The company's earnings are significantly impacted by the recently-passed tax bill: The company's effective tax rate shot up from 22% to 138% for Q4 of 2017, thanks to a one-time charge of $9.9 billion for repatriating foreign earnings. While net income is down versus 2016 ($19.5 billion), revenues are way up - around 23%. And Google's cost-per-click - a key metric that helps define how valuable its ads are - fell 14% year over year, slightly less than analysts expected. Another positive during the quarter was the company's traffic acquisition costs (TAC), which Google plays to manufacturers.

Google parent company Alphabet on Thursday (Feb 1) reported a quarterly loss to set aside funds to pay taxes on repatriated profits, and named a new chairman to replace outgoing Eric Schmidt.

Today is a surprising slip-up for the Google, which while it continues to print money and beat Wall Street's expectations on the revenue front, found itself tumbling after its fourth-quarter earnings came out. For the full year analysts forecast EPS of $41.68 on revenues of $131.46 billion. The stock further slipped $53.08 or 4.55% in the after-hours trading.

Alphabet (NASDAQ:GOOGL) had its price target lifted by B. Riley from $1,200.00 to $1,375.00 in a research note issued to investors on Tuesday, Marketbeat Ratings reports.

Alphabet (NASDAQ GOOGL) traded down $68.01 during mid-day trading on Tuesday, hitting $1,113.58.