GAFAM has largely exceeded its annual forecasts, with growth of 76 billion dollars over the year 2021.
The pandemic and the release of the highly anticipated Pixel 6 have made Google happy. The parent company of GAFAM Alphabet has just formalized a record financial balance sheet in 2021. After a visibly profitable holiday season for the company, it now records an annual net profit of $76 billionalmost double compared to 2020, which peaked at “only” 40 billion.
A record fourth quarter
In the last quarter of last year alone, between October and December 2021, the American group exceeded the 75.3 billion dollars in turnover, for a net profit of 20.64 billion dollars, reports an official press release published on Tuesday. After this announcement, Alphabet’s share price rose 7%. An excellent annual result, made possible largely thanks to Google’s advertising activities, said Ruth Porat, Alphabet’s financial director: “Our quarterly revenue, up 32% year-on-year, reflects strong ad spend across all formats and strong online consumer presence, as well as substantial revenue growth for Google Cloud.”
Despite a shaky start to the year, Google has finally been able to take advantage of the pandemic, and in particular of our new online browsing habits. Like Meta, Amazon, or even Microsoft, which took advantage of last year to greatly develop its cloud offer, Alphabet has been able to multiply the sources of income. In addition to online advertising on Chrome and YouTube, which alone allowed the web giant to garner $61 billion in revenue, the company’s cloud branch has also made significant progress, with $5.5 billion. dollars in sales and growth of 45%.
Company boss Sundar Pichai also used his year in review to praise the popularity of the Pixel 6, which “despite supply chain challenges” managed to achieve “record quarterly sales”.
Big projects in 2022
After a year 2021 beyond expectations, Google is expected to continue growing in 2022. Digital advertising is expected to bring more than $171 billion to Google this year, according to analyst firm eMarketer. 30% of the world market. A hegemonic situation that should attract even more attention from antitrust regulators in the future.