Google's capital income doubled in 2018
Google's capital expenditure is growing much faster than its revenues.
The alphabet said on Monday's performance report that Google's capital expenditures, including the cost of data centers and other facilities, more than doubled in 2018, the fastest expansion in at least four
While the vast majority of Google's revenue comes from advertising, the company has taken on more business from cloud applications and cloud-based infrastructure, which requires data center equipment, and Google continues to engage rapidly throughout the world and requires it to purchase and hiring more space for people to work.
Google's investment in 201[ads1]8 increased 102 percent to $ 25.14 billion, up from a 34 percent growth rate in 2017. In the fourth quarter, consumption increased 80 percent to $ 685 billion, while Turnover increased by 21 percent to $ 39.1 billion (the alphabet reported total sales of $ 39.3 billion.)
The alphabet spent much more last year than rival Microsoft, which accounted for 16 million. are dollars in investments, up less than 39 percent year-over-year.
Data center extension is critical to Google as it builds its cloud computing capabilities. In addition, the company bought Chelsea Market in New York and has made real estate investments since in places like Texas.
The number of the alphabet in 2018 rose 23 percent to 98,771.
"As far as capex [capital expenditures] is concerned, we continue to invest in both calculation requirements and office facilities, although we expect the capital development in 2019 to moderate moderately," said analyst of a conference call after the earnings release. Alphabet's finance director, Ruth Porat. ] WATCH: See these two great calculations in the Alphabet's Earnings Report