Listen: The time you lost watching YouTube ads last year netted Google $15 billion
"The parent company of Gulu reported. Its earnings Monday night here to give us. The highlights is our technology news editor. Boda Boda thanks so much for joining US happy to be here all right so alphabets. Most recent report. Back in October was a bit disappointing. How did they fare this time? if you're Wall Street just slightly more disappointing with some shoots So one thing that was Wall Street was expecting Revenue to be a little a bit higher than it was and operating profits to be a little higher than it was. Now Mind you. Google is wildly profitable and has makes a ton of revenue just in the most recent quarter. Which is the holiday quarter Revenue was up seventeen percent to forty six point one billion so. It's kind of difficult to say that you know Google struggling by any stretch stretch But one thing that Wall Street had pressed alphabet for a long time to be more specific about where it's about where its revenues coming from and one thing that it did really league for the first time is really to break out specifically the youtube business and Google cloud in terms of revenue categories. And one thing that said it for you to the AD business isn't stallone Is Worth about fifteen billion dollars and Google cloud gave details on that as well and the idea is really. The clubmen is really important. because there's a google title is enmeshed in a really really difficult battle with Other cloud providers like Amazon with Amazon Web Services and Microsoft with your and Wall Street was really wanting linked to wanna Google to provide more details and just say like okay. Give us an idea of how well this businesses stooling so we can rate it relative to some of the other competitors this was the first earnings parts and senator betrayed took over as alphabet. CEO from Google Co founder. Larry Page last year. Pichai was obviously formerly the CEO of Google. Is it too early to have expected there to be any changes with his leadership or are we seeing some of this play out because of Him taking the helm so I think one of the things that he he mentioned on the call and this is something that obviously he was with Google so he was an insider very familiar with the business but one thing that at Wall Street analysts basically basically said on a conference call to say we welcome this additional disclosure. Like some of the you know giving a little bit more detail on some of the business units that That comprised like the alphabet machine. So that's one thing that they had pressed Sundar on in the company and the company delivered in that way but you know Sundar more you know big picture wise. One thing that he talked about was you you know he talked about what is investing focuses are and one thing obviously talked about artificial intelligence that being something that the company really wants to deeply invest in and he talked about really the you know the idea of doing more with data and so cloud computing is something that they've pushed a lot on We've reported Sometimes exclusively on the health partnerships to Google's reached. And you know basically Sundar said is we're going to reach even deeper into that So not just project. Nightingale which again is a project to work with essential health and to manage to manage crunch data for millions of patients across the twenty one St Hospital System but identified other partnerships. Like that and another thing that brought third call in kind of pointing to where strategy is going as activision blizzard. The video game company They recently announced a deal where they said okay. Well we want to stream these East sports matches on Youtube. Meanwhile activision will basically invest in US Google's cloud services and also use artificial intelligence tool. So Google wants to say like. Hey we don't want to just manage one thing for one business. We want to be a one stop shop but basically offer a bunch of different services to companies to make the value proposition. A Lot. A lot a better in terms of the Google Health Collaborations that you were mentioning. Is that something that they're already being able to monetize unclear so some of this is you know. They're trying to make an argument that we can add value to what you already do. So in some cases we WANNA manage data That's something that the their services services that Google is providing as part of a package now if a company wants to use Google as a cloud service provider and we WANNA put data in the cloud. That's something that obviously that they're you know. They're they're collecting revenue on There other parts of the alphabet enterprise like verily severely as life sciences company and. What's unique about this? Is they've taken outside. Investment vestment from tamasek which is Singapore's Sovereign Wealth Fund and they've also taken investments from silverlake which is private equity firm in the idea is basically to a look at different ways as to really impact the healthcare system beyond just Beyond just patient data so one of the things that that fairly is doing is they're looking at license engineering research search and as a part of that they're looking at like how how they're one look at additional ways to basically impact the healthcare system so some of this is going to look at Using am to improve drug delivery of some of this is looking at a I to improve clinical trials and the idea is to basically say okay. How can we use data and and a I to basically impact the healthcare system so some of this already having revenue impact for Google? But some of it is. They're making these investments to own these partnerships and basically we see this as a long-term bet that this can drive revenue down the row. These are obviously things. Though that have already garnished a lot of scrutiny. Both from people in the the healthcare community but also from regulators and Looking ahead to twenty twenty one of the things investors. I'm sure will be paying close. Attention to is has the increased scrutiny from regulators on all sorts of fronts so when facebook reported its earnings. They said they expected their growth to slow. Because of new legal measures from California And also in Europe how is alphabet addressing the way that legislation could impact. Its business moving forward. So one thing so so google didn't go They didn't give necessarily a number to say we think we're going to grow twenty percent Next year one thing they said is they kind of went across their business unit to say we think for search. There's going to be ample opportunity going forward. So what does that mean is that is that a lot of money is a lot more money than you're making now is it a little bit less Google basically positioning itself that it thinks it's bizarre that it's various businesses are going to grow And basically they're making investments it's to support that I think with on the Regulatory Front Google definitely said that it's going to cooperate with You know any broad probes inquiries that That it receives from entities like State Attorneys General or the Department of Justice or any or any other entity. And you know a lot of the regulators are looking being at Things that they're looking at you know Google's largest and the and the things that basically make this company so big and you know so it's looking at the the girth of online in advertising business and purported anticompetitive behaviour and in the big picture like Google is basically motoring along in thinking that you know it can man you know it can continue to invest in the business while managing these inquiries you know at the end of market closed today. A ghoul alphabet crossed a trillion dollars market value. Now now it's kind of wavered between their ethnic you reach that earlier this year and then trade at lower but you know the big picture these tech companies are you know for the most part Wall Street is seeing that you know despite everything that's going on in all the noise and all the frustration from regulators and some users you know Wall Street and investors still see these companies as a safe you bet for the most part Wall Street analysts think these companies are going to grow so you know based on company based on public statements and based on. Just you know how large it's GonNa it's GonNa Behar to disrupt Google and search. It's going to be hard to disrupt Google in online advertising just because it has so much of a market leader in so much So much of a installed install customer base. One thing that Google touted on its conference call is that it had a really strong holiday season. And with that you know Google is basically been investing and building out his platforms for consumers. So that you can buy more stuff within Google tools instead of like if you wanted a hotel if you want to book a flight instead of going to other airlines or other hotel pages ages you could just do it all in Google and you wanted. And they've talked about. Hey we want to find opportunities to allow people to make more money within youtube and you know the the the the value proposition for advertisers is great. Because it's like hey if you can get everyone here it just you know. Millions of people use Youtube. Everyday people already here if you can just put more tools and bake more ways that they can make more money inside of this. Why leave it seems like it seems like a good deal? It seems like it's setting themselves up for an even bigger conversation with antitrust just regular though and especially some of the Democratic candidates who've come out saying that they wanNA break up big tack. Did they make any comments about that on their call Not Not not to the extent you know in terms of addressing the inquiries. I think you know usually the companies and Google speaks in broad terms and you know and says hey you know the companies understand that they are targets. And you know they're not you know they see the headlines just as much as everyone else but I think in terms of their focused on The you know the businesses and the value proposition that they offer to consumers and folks and businesses well and you know they see You know they say that they're going to cooperate in any manner with any regulatory pro- which which makes sense but in terms of like going specific in? Hey we're going to change our approach because of Xyz you know for the most part you know the Probes are are just that you know. They're you know the attorneys general and you know folks from the DOJ there on a fact-finding mission. They're trying to understand. Not just google. Oh but from others like what impact Google had in the marketplace especially when in terms when it comes to anti-competitive conduct and you know from Google's perspective obviously there they they see themselves as being able to motor along and you know as these probes circle but for the most part there is. This isn't necessarily changing. How they're going to do their business unless someone tells them you need to change your business because of reasons? XYZ And tell then ample growth our technology news editor vote today. Thank you so much for joining"