Google owner Alphabet earnings hit by rising costs costs

Google's parent company Alphabet saw lower than expected profits in the last three months of 2017 after higher costs offset a big jump in advertising sales. 

The tech giant made quarterly profits of $6.8bn (£4.8bn), missing the $7bn analysts had predicted.

Revenue jumped by 24% to $32.3bn helped by adverts sold on its search engine, websites and apps.

But overall expenses climbed as Alphabet spent money on diversifying beyond its core search business.

This included investment in YouTube content, in an attempt to make the service more attractive to advertisers.


Alphabet shares fell more than 5% in after-hours trade, before paring those losses. The results for the October-to-December period excluded a one-time $9.9bn charge relating to changes to the US tax code, that will lower corporate tax rates.