Alphabet, the technology powerhouse whose primary asset is Google, reported earnings that disappointed Wall Street and its shares were dropping 3 percent after the closing bell on Monday, more than wiping out the stock's gains during the regular session.
Ahead of its release of fourth-quarter financial results, some were predicting Alphabet's shares would rise enough after strong numbers that it would be the most valuable company on the planet, but at the close of trading its $790 billion market cap lagged behind Apple's $810 billion market cap.
Alphabet was expected to record $38.9 billion in revenue in the fourth quarter, but beat the projection by about $300 million. Earnings of $12.77 per share also beat forecasts.
Investors, though, seemed disappointed in Alphabet's "other bets" category, where initiatives like self-driving cars are housed. There, revenue was $154 million, about $33 million short of expectations.
Google's advertising revenue rose to $32.64 billion from $22.24 billion in the same quarter a year earlier.
Alphabet ended the quarter with $109.1 billion in cash, equivalents and marketable securities, up from $101.9 billion. The company ended the quarter with 98,771 employees, up from 80,110 the year before.
Google CEO Sundar Pichai said YouTube has nearly 2 billion monthly logged-in users, up about 200 million since May, and the number of YouTube channels with more than 1 million subscribers almost doubled year over year. The number of creators earning five or six figures off of YouTube grew 40 percent.
"A big priority for YouTube in 2019 is to continue our work to quickly find and remove content that violates YouTube's content guidelines," said Pichai. "It's an important challenge and with advanced machine-learning and investments in human reviewers, we are making continued progress."
Pichai also boasted that a free stream of The Lego Movie in November, sponsored by Warner Bros. as basically an ad for the sequel, was viewed by 17 million people in a day.
This article was originally published by The Hollywood Reporter.