On Wednesday, the world’s 5th largest company by market capitalization, Alphabet “GOOG” reported better than expected earnings for Q4, beating analyst’s estimates for revenues and profitability. The company reported revenues of $182.5 billion for the year and over $41 billion in operating profits.
Although its Cloud Computing division is still unprofitable by $5.61 billion on $13 billion of revenue in 2020, it is rapidly growing. Cloud Computing is turning into an important part of several Big Tech companies such as Microsoft “MSFT”, Amazon “AMZN”, and Alphabet “GOOG”, which are competing for market share.
Moreover, Alphabet is leveraging its knowledge and expertise to expand in different areas. For example, it recently signed a 6-year deal with Ford “F” and will be responsible for the automaker’s in-vehicle connectivity.
Shares of Google’s parent company, Alphabet surged 8% at the announcement of the earnings beat, reaching a market cap of $1.41T.