Alphabet Falls on Revenue Miss, but Wall Street Bets on YouTube Success

Alphabet (NASDAQ:GOOGL) missed on revenue and its stock is paying the price on Tuesday, but the weakness is unlikely too last for long, with several analysts giving the tech giant a thumbs up. The company reported fourth-quarter results that missed revenue estimates, sending its share price 3% down. But the miss was driven by "lower-quality" areas like other bets, RBC said and upgraded its price target on the stock to $1,550 from $1,500. One of the biggest surprises to come out from Google's quarterly report was the disclosure of how fast its YouTube and cloud businesses were growing. Cloud revenue surged 53% to $32.52 billion for the quarter year on year, and YouTube rose 31%. While the YouTube rise was smaller than expected, some are optimistic that the platform will see growth accelerate as advertising adjusts to the new content medium.

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