Alphabet hits record $85m a day in profit

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Google's parent company Alphabet has again revealed record revenues in the last quarter, however there are mixed results as costs have also risen.

On one hand, there are the positives: Alphabet reported earnings of $39.27bn in the fourth quarter of 2018.

Revenue rose 22 per cent year-on-year, while recorded profits hit $8.9 billion. Europe's revenue rose 20 per cent thanks to a stronger euro and pound. Middle East and Africa saw a 29 per cent jump, as well.

On the other hand, however, are the negatives: fees that the company has to pay Google and Apple to remain their default search engine were also up in the same time period. They are now up $7.4 billion, up from $6.6 billion year-on-year.

Cloud, hardware and media services have seen $6.4bn in revenues, while 'other bets' – autonomous vehicles, fibre optic and healthcare, raked in 154m in revenue. However, the losses from 'other bets' rose sharply, from $748m last year, to $1.3bn this year.

Revenue from its advertising business kept growing at the same pace of 20 per cent, compared to the same period last year. It now hit $32.6 billion.

The news resulted in the company's shares falling three per cent in after-hours trading.

Amazon also issued a new regulatory filing recently, saying it had spent some $1.65 billion on acquisitions last year.

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