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Alphabet (GOOGL) Stock Gains 8% in Pre-market on Record Profits for 2nd Straight Quarter

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by Steve Muchoki · 3 min read
Alphabet (GOOGL) Stock Gains 8% in Pre-market on Record Profits for 2nd Straight Quarter
Photo: Depositphotos

Alphabet (GOOGL) stock enjoyed a profitable 2020 as they jumped approximately 32.77% during the year.

Alphabet Inc (NASDAQ: GOOGL) stock jumped approximately 7.91% during the pre-market session to trade around $2,061. Notably, Alphabet stock had closed Tuesday trading at $1,919.12, up 1.38%.

The spike in Alphabet stock in the past two days is largely attributed to the record profits reported during its Q4 earnings results on Tuesday. Notably, Alphabet recorded revenue of $46.43 billion excluding payments to distribution partners. According to a survey by media outlet Bloomberg, analysts on average expected Alphabet to record revenue of approximately $44.2 billion.

Speaking during the release of earnings results, Alphabet Chief Executive Officer Sundar Pichai noted that the company has rebounded strongly from the pandemic fueled by increased demand for its products. “Our strong results this quarter reflect the helpfulness of our products and services to people and businesses, as well as the accelerating transition to online services and the cloud,” Pichai said.

However, the company has been lagging behind other tech giants including Microsoft Corp (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) that have invested significantly in the cloud computing industry.

Alphabet with its well-diversified portfolio of businesses has significantly bolstered its stock market during the pandemic. Notably, most global businesses have resulted in either partly working remotely or entirely shifted to remote working conditions. Despite the huge competition in the internet based companies, Alphabet is well positioned to handle the market shift.

“The past year also accelerated the shift to cloud, and adoption of online services,” Pichai said on a conference call with analysts. “This has profound implications for all companies and consumers and we’re pleased that so many trust us to help make this transition.”

Alphabet (GOOGL) Stock and Company’s Q4 Results

Alphabet investors are optimistic the company will deliver better results in the coming quarters as major vaccines get ready to be approved and mass produced. Alphabet has recorded profits in two subsequent quarters thus giving an impression of better future growth prospects.

Alphabet (GOOGL) stock enjoyed a profitable 2020 as they jumped approximately 32.77% during the year. Besides, GOOGL stocks have added approximately 16.62%, and 10.29% in the past three months and one month respectively according to metrics provided by MarketWatch.

As a result of the recent leap in Alphabet stock, the company has a reported market valuation of approximately $1.28 trillion with 300.64 million outstanding shares.

During the past three months, Alphabet’s search-engine segment recorded a revenue of $15.23 billion, in comparison to $10.67 billion recorded a year ago. Meanwhile, the search-engine segment recorded approximately $22.30 earnings per share compared to$15.35 per share in the past year.

Business News, Market News, News, Stocks
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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