Alphabet, the parent company of Google, announced on Wednesday February 2 that it had obtained a net profit of 76 billion dollars (67.3 billion euros) in 2021, double the previous year. The holiday season was particularly fruitful.
In Q4, Alphabet’s revenue reached $75.33 billion, an increase of 32%. In its infancy, the pandemic had shaken the digital giant, with the withdrawal of advertisements from tour operators in particular, but the habits adopted during the confinements ended up benefiting it, as well as the tech sector as a whole.
$171 billion in advertising for 2022
Teleworking and e-commerce are becoming Google and YouTube, which also belong to Alphabet, even more attractive for brands, which want to track their potential customers.
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Several American prosecutors have also criticized Google for recording the geolocation of certain users who have expressly refused it, and the anti-monopoly authorities are closely monitoring the company’s activities. However, the advertising market should bring 171 billion dollars (151 billion euros) to Google in 2022, or 30% of the market, against 24% for Facebook.
Even if the expectations are good for the group led by Mark Zuckerberg, now called Meta, the 2021 results are considered disappointing. The social networking giant made 10.3 billion dollars (9.1 billion euros) in profit in the fourth quarter, 8% less than last year.
2.8 billion users per day
For the first time in its history, Facebook even saw its number of daily users decrease. However, 2.8 billion people continue to use one of the company’s services (Facebook, Instagram, Messenger and WhatsApp) on a daily basis. The turnover for this period amounts to 33.67 billion dollars (29.8 billion euros).
Meta executives cited competition from TikTok to justify the difficulties. Moreover, if the metaverse (a parallel universe where the public will use augmented or virtual reality glasses to interact, work or have fun) on which the company focuses is considered an important vector of profit for the future, it generates today mainly significant investment costs.