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Photo by Jaap Arriens/NurPhoto via Getty Images

Google's stock was down 5% in after-hours trading Thursday after the company reported that it missed on earnings per share. Google says revenues were negatively impacted by tax regulation that went into affect last month.

Why it matters: Google's core business is still healthy, despite content concerns on its media platforms, increased scrutiny from European regulators, and commerce threats from Amazon. Its advertising business grew and drove revenues to beat expectations.

The company is trying to lessen its reliance on advertising by diversifying into new areas such as cloud computing, which brought in more than $1 billion in revenue for the quarter.

New face: Former Stanford University president John Hennessy was appointed as chairman of the board, replacing Eric Schmidt, who recently left the role.

By the numbers:

  • Earnings per share: $9.70 vs $9.98 expected by a Thomson Reuters estimate.
  • Revenue: $32.32 billion (a 24% increase from a year ago) vs $31.86 billion Thomson Reuters estimate.
  • Other bets: Alphabet-owned side projects (like Nest, Waymo and Verily) are not yet profitable, posting a $916 million operating loss on $409 million in revenue in the fourth quarter. But the loss narrowed over the year-ago quarter.
  • Cost per click: The key metric for Google properties decreased 16% year-over-year, meaning that its ads were clicked more often, bringing prices down for advertisers.
  • Cloud payoff: Google’s cloud business now generates more than $1 billion in sales per quarter, a notable milestone.

Correction: An earlier version of this post incorrectly stated that the company missed revenue expectations.

Go deeper

5 hours ago - Politics & Policy

Kellyanne Conway's parting power pointers

Kellyanne Conway addresses the 2020 Republican National Convention. Photo: Nicholas Kamm/AFP via Getty Images

Kellyanne Conway has seen power exercised as a pollster, campaign manager and senior counselor to President Trump. Now that his term in office has concluded, she shared her thoughts with Axios.

Why it matters: If there's a currency in this town, it's power, so we've asked several former Washington power brokers to share their best advice as a new administration and new Congress settle in.

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GOP holdouts press on with plans to crush Cheney

Screenshot of emails to a member of Congress from individuals who signed an Americans for Limited Government petition against Rep. Liz Cheney. Photo obtained by Axios

Pro-Trump holdouts in the House are forging ahead with an uphill campaign to oust Rep. Liz Cheney as head of the chamber's Republican caucus even though Minority Leader Kevin McCarthy told them to back down.

Why it matters: What happens next will be a test of McCarthy's party control and the sincerity of his opposition to the movement. Cheney (R-Wyo.) is seen as a potential leadership rival to the California Republican.

Democrats aim to punish House GOP for Capitol riot

Speaker Nancy Pelosi passes through a newly installed metal detector at the House floor entrance Thursday. Photo: Drew Angerer/Getty Images

House Democrats plan to take advantage of corporate efforts to cut funding for Republicans who opposed certifying the 2020 election results, with a plan to target vulnerable members in the pivotal 2022 midterms for their role in the Jan. 6 violence.

Why it matters: It's unclear whether the Democrats' strategy will manifest itself in ads or earned media in the targeted races or just be a stunt to raise money for themselves. But the Capitol violence will be central to the party's messaging as it seeks to maintain its narrow majorities in Congress.