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Alphabet Slips 7% Despite Strong Q4

Alphabet (NASDAQ: GOOGL) reported its Q4 and full-year 2024 financials, posting a quarterly revenue of $96.5 billion, up from $86.3 billion a year earlier, reflecting 12% year-over-year growth. This came in slightly below the $96.7 billion analysts had anticipated.

Google Services revenues increased from $76.3 billion to $84.1 billion, up 10% compared to the same quarter in 2023, driven by higher ad sales and strong demand for subscription products. YouTube ads revenue also rose from $9.2 billion to $10.5 billion.

Google Cloud’s performance showed top-line growth from $9.2 billion to $12.0 billion, representing a 30% climb, but still missed consensus estimates. However, it contributed to a large jump in operating income within Google Cloud, which rose from $864 million to $2.1 billion.

You can read more on the matter here.

What’s going on?

• BC Expedites 18 Resource Projects Representing $20B In Investment (theDeepDive)

• Nearly one-third of seized fentanyl attributed to the U.S.-Canada border had no connection with Canada (Globe)

• Trump Threatens EU With New Tariffs (theDeepDive)

• Tariff Threat Spurs Canada to Rethink Limits on Oil Pipelines (Bloomberg)

• Trump Wants Aid-for-Minerals Deal With Ukraine (theDeepDive)

• Jeff Bezos’s $10bn Earth Fund cuts ties with climate group (FT)

• Trump Signs Order To Have The “Biggest” Sovereign Wealth Fund (theDeepDive)

• Toronto home sales rebound 10% in January (Reuters)

• Canadian MP Calls for McKinsey Ban Over US Tariff Analysis (theDeepDive)

• Trudeau announces economic summit Friday to address U.S. tariff threats (Globe)

• Federal Employee Unions Sue to Block DOGE Access to Treasury Data (theDeepDive)

What’s the latest?

• Mortgage: Mortgage applications to purchase a home dropped 4% last week and remained flat compared to the same period last year, despite a 25% increase in home supply. The average 30-year fixed mortgage rate declined slightly to 6.97%, but home prices continue to rise, with the average loan size reaching $447,300—the highest since October 2024. Refinance applications rose 12% week-over-week and 17% year-over-year, though overall volumes remain low. Home sales are at a near-30-year low, with listings staying on the market for an average of 54 days, the longest since March 2020.

• Trade Surplus: Canada posted a $708 million trade surplus in December, its first in ten months, driven by a 4.9% rise in exports, particularly energy products. The trade surplus with the U.S. grew 5% to $11.3 billion, while overall trade with the U.S. exceeded $1 trillion for the third consecutive year. Despite this, Canada’s annual surplus with the U.S. declined to $102.3 billion in 2024 from $108.3 billion in 2023. Excluding the U.S., Canada’s trade deficit with the rest of the world widened to $10.6 billion in December.

• Markets: European markets traded slightly higher, with the Stoxx 600 up 0.18% and the FTSE 100 rising 0.4%, while the CAC 40 and FTSE MIB declined. Banco Santander led gains, surging 7% on record profits, while GSK rose 6% after boosting long-term sales guidance. Novo Nordisk gained nearly 3% after strong obesity drug sales, and TotalEnergies rose 1.4% despite a 21% drop in net income. Meanwhile, Asia-Pacific markets were mostly up, but China’s CSI 300 fell 0.58%, and S&P 500 futures dropped following Alphabet’s weak earnings report.

• Alphabet: Alphabet shares fell over 8% after missing Q4 revenue expectations of $96.56 billion, reporting $96.47 billion instead, despite a 12% year-over-year growth. The company announced $75 billion in capital expenditures for AI and infrastructure, far exceeding Wall Street’s $58.84 billion estimate. Analysts cited rising costs, high spending, and slower cloud revenue as key concerns. JPMorgan and Bernstein analysts noted that while Alphabet dominates in digital ads, its AI investments and cloud performance are weighing on investor sentiment.

• BoE: The Bank of England is expected to cut interest rates to 4.5% on Thursday, with markets pricing a 98% probability of a quarter-point reduction. Traders now anticipate up to four rate cuts in 2025, up from two at the start of the year, amid weaker-than-expected retail sales and economic stagnation. Inflation has cooled to 2.5%, while services inflation dropped to a 33-month low of 4.4%. Uncertainty remains due to upcoming tax hikes and potential trade disruptions from U.S. tariffs, though some analysts see opportunities for the U.K. in shifting global trade dynamics.

Trump suspends tariffs

The stock market and stuff

• First Majestic Significantly Expands Footprint Of Navidad Discovery (theDeepDive)

• Uber beats fourth-quarter revenue expectations but offers soft guidance (CNBC)

• Nissan to Reject Honda Deal to Create World’s No. 3 Automaker (WSJ)

• Bitcoin Price Slips After MicroStrategy Halts Buying Spree (theDeepDive)

In the juniors

• Power Nickel Hits 19.4 Metres of 4.29% Copper Equivalent At Lion Zone (theDeepDive)

• CanAlaska Hits 5.0 Metres Of 34.38% eU3O8 At Pike Zone (theDeepDive)

• Ascot Resources Delays Premier Gold Restart Again, Needs Further Funding (theDeepDive)

FULL DISCLOSURE: Power Nickel is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Nickel. The author has been compensated to cover Power Nickel on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.