Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Alphabet Weaker as Report Says it is Slashing Fee on Cloud Sales

Published 09/27/2021, 08:30 AM
Updated 09/27/2021, 08:32 AM
© Reuters.

By Dhirendra Tripathi

Investing.com – Alphabet stock (NASDAQ:GOOGL) traded 0.3% lower in Monday’s premarket following a CNBC report that it is cutting the amount it keeps from sales on its Cloud marketplace.

When customers buy software from other vendors on its Cloud marketplace, Google keeps 20% of the sales. According to the report, Google now plans to reduce that drastically to just 3%.

Google trails Amazon (NASDAQ:AMZN) Web Services and Microsoft (NASDAQ:MSFT) Azure in Cloud infrastructure.

Amazon Web Services, the market leader, charges a 5% commission while Microsoft pegs it at 3%.

The move, a response to competition, comes at a time when regulators worldwide are closely monitoring the pricing practises of Big Tech, which are under pressure in other business segments.

In the second quarter ended June 30, Google reported an operating loss of $591 million from its Cloud segment on revenue of $4.62 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.