Google’s big plans for YouTube and cloud lead to big spending

Alphabet Inc. earnings failed to live up to expectations Thursday, and two of the main culprits appear to be the search giant’s cloud computing and streaming video initiatives. The Google parent company’s adjusted quarterly net income of $5.25 billion was roughly $310 million less than the average expectations of analysts, according to FactSet, a likely factor in a 5% after-hours drop for Alphabet GOOGL, +0.66% GOOG, +0.86%  stock. The shortfall came from costs that are slightly obscured in a big bucket of spending that increased 27% from the same quarter a year ago, landing $285 million higher than analysts’ projections. While those costs are mostly obscured because they are lumped together, Alphabet Chief Financial Officer Ruth Porat detailed in a conference call Thursday that some of the increase was associated…


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