Google's parent Alphabet posted sharply higher sales and profit Monday, just days after Facebook's blowout earnings.

Alphabet's fourth quarter revenue rose 22 percent from a year ago to nearly $40 billion dollars, beating Wall Street expectations.

But shares fell about three percent in after hours trading as sharply higher spending worried investors.

The company investing in new products like cloud computing and consumer gadgets like smart speakers.

Some Google-watchers have questioned whether such businesses can generate the same returns as its search engine.

Now Alphabet says spending will moderate significantly in the coming year.

Though it's promising to keep making big bets on artificial intelligence, consumer hardware and emerging markets.

The tech giant also greenlighted a plan to buy back an additional $12.5 billion dollars of its shares.