[Google's parent company Alphabet released the latest financial report: artificial intelligence, cloud computing and other spending up to 7.7 billion US dollars] on Monday, Google's parent company Alphabet announced the latest quarterly earnings report, achieving the strongest sales growth in the past four years. However, spending on the purchase of real estate, artificial intelligence, cloud computing and consumer equipment business also reached the highest level in history.

In the quarter ended March 31, Alphabet's revenue was 31.146 billion U.S. dollars, compared with 24.75 billion U.S. dollars in the same period of last year; its net profit was 9.401 billion U.S. dollars, and its net profit for the same period last year was 5.426 billion U.S. dollars.

Alphabet's performance exceeded analysts’ previous expectations.

This also means that in the increasingly rigorous censorship of media advertising, marketers continue to invest in their services.

At the same time, however, the company’s expenses have also reached the highest level in history, and this quarter’s capital expenditures have increased nearly threefold to US$7.7 billion, mainly for real estate, artificial intelligence, cloud computing and consumer equipment.

Where are the money?

Almost all of Alphabet's spending on these items is to support cloud computing and consumer device business. Google's business lags behind Amazon and Apple, and Alphabet is now making big strides.

Chief Financial Officer Ruth Port reminded investors that Alphabet's expenses were spent on three major projects: building a data center; laying three new submarine cables; building processors, networking equipment, and other machines to power Google’s massive artificial intelligence efforts.

Google CEO Weichai told investors that Google’s newly established hardware department will achieve “the scale we want to see” in two to three years, which will be comparable to Amazon’s and Apple’s smartphones and smart speakers. .

Technical investment also includes custom chips, which is an expensive technology that Apple has been investing in for years.

Also because of high spending, Google’s high spending in the first quarter of this year has reduced its operating profit margin from 27% a year ago to 22%.

A large amount of previous investment mainly supported Google's search and YouTube, which now occupy the leading market position. This time, Alphabet's investment is still not clear whether it can narrow the gap between Amazon and Apple.

According to Forrester Research's estimate, Google's cloud computing service may generate as much as $250 million in sales this year. But this figure is only a small part of Amazon AWS's quarterly revenue.

On mobile phones, UBS estimated that Google sold about 2 million mobile phones in the fourth quarter. During this period, Apple sold 77 million iPhones.

What are the challenges?

While Alphabet is spending a lot, other technology giants are also laying out their plans. In the fourth quarter, Amazon’s capital expenditures increased by 50%. Facebook’s spending can almost double, and everyone’s focus is similar.

Despite the large amount of investment, the growth still comes from Google’s traditional business. Porat said that the demand for mobile search advertising and the strong performance of YouTube video services have driven market sales. She said that Google has also contributed to the sale of targeted advertising on other websites.

The other is data security.

So far, Google has gotten rid of the privacy concerns raised by the disclosure of the vulnerability of Facebook's data collection. Google is the world's largest digital advertising provider, relying on targeted information based on user online information and behavior. Although concerns about privacy and new regulations will intensify and may affect Google’s advertising business to some extent, the company’s extensive reach, huge resources, and dominant market share mean that smaller competitors may More loss.

Europe's "General Data Protection Regulations" will be launched next month, which will change how Internet companies collect user data and targeted advertising. Google has made about 18 months of adjustments to the new law.

"We really feel that we are ready to meet these requirements," said Porat. “We have changed our policies as needed. We also provide users with powerful user control and privacy settings and privacy checks. This is a very strong area and we will continue to do a lot of work in this area.”

In addition, the flow acquisition cost (TAC) is also rising. Google’s payment to its distribution partners increased by 36% to US$6.3 billion. Alphabet executives said that on Google's website, TAC’s revenue ratio will continue to climb, but the pace will slow.

Metal film resistors

Metal Film resistor is Film resistor (Film Resistors) of a kind.It is the high temperature vacuum coating technology will be closely attached to the porcelain nickel chromium alloy or similar bar surface skin membrane, after debugging cutting resistance, in order to achieve the final requirements precision resistance, then add appropriate joint cutting, and on its surface coated with epoxy resin sealing protection.As it is a lead resistance, it is convenient for manual installation and maintenance, and is used in most household appliances, communications, instruments and instruments.

Metal Film Resistors,2W Metal Film Resistors,3W Metal Film Resistor,5W Metal Film Resistor

YANGZHOU POSITIONING TECH CO., LTD. , https://www.cndingweitech.com