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GOOGL Stock Up 5% in Pre-martket after Alphabet Reported 34% Growth in Q1 Revenue

UTC by Ibukun Ogundare · 3 min read
GOOGL Stock Up 5% in Pre-martket after Alphabet Reported 34% Growth in Q1 Revenue
Photo: Depositphotos

Alphabet stock has jumped 85.87% over the past year and has added 30.72% in its year-to-date record.

Alphabet Inc (NASDAQ: GOOGL) stock jumped 5% in extended trading after releasing financial results for 2021 Q1 on the 27th of April. According to the report, Alphabet had a mega earnings beat in the quarter as the company’s revenue climbed 34% to $55,314 billion.

Alphabet Beats Analysts’ Expectations in Q1

Ahead of the report, Wall Street had expected that Alphabet would see $15.82 earnings per share. However, the company’s earnings for Q1 were $26.29 per share. In addition to the gains, Alphabet’s revenue was $55.31 billion. The reported revenue is more than a $3 billion increase over the $51.70 billion expected by Wall Street analysts.

Furthermore, YouTube ads generated $6.01 billion, a 49% rise year-on-year. StreetAccount had predicted that gains from YouTube ads would be $5.70 billion. A recent report by Pew showed that YouTube is the most visited social media app during the pandemic. The report said that US adults that visit the platform in 2021 grew from 73% recorded in 2019 to 81%.

Also, FactSet estimates that Alphabet’sTraffic Acquisition Costs (TAC) would be $9.25 billion. However, Alphabet recorded $9.71 billion in 2021 Q1.

On the other hand, Google Cloud revenue stood at $4.05, a little lower than FactSet estimates of $4.07 billion.

“Over the last year people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our cloud services are helping businesses, big and small, accelerate their digital transformations,” the CEO of Google and Alphabet Sundar Pinchai commented said.

According to the company’s chief financial officer, Ruth Porat, the surge in consumer activity online and growth in advertiser revenue reflect the huge total revenues of over $55 billion. She further expressed her excitement over the “ongoing momentum in Google Cloud.”

Alphabet Repurchases $50 Billion Stock

Additionally, Alphabet repurchased an additional $50 billion of its Class C capital stock. The company’s board of directors authorized the stock buyback on the 23rd of April.

“The repurchases are expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions…,” Alphabet said.

Alphabet stock is currently trading at $2,407 in the pre-market. The company has been growing in the last 12 months. Alphabet stock has jumped 85.87% over the past year and has added 30.72% in its year-to-date record. In the last three months, the multinational company has increased 11.95% and advanced further by 0.53%.

Last month, Alphabet said it would be expanding its offices and data centers in 19 states. The company said it is investing $7 billion towards the expansion. The development would result in the creation of a minimum of 10,0000 full-time jobs.

Business News, Market News, News, Stocks
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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