Alphabet (GOOGL) on Thursday reported first-quarter earnings and revenue that handily beat consensus estimates. The company announced its first-ever dividend, sending Google stock soaring.
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Google said its first quarterly dividend will be 20 cents. The internet giant did not provide an update on its search for a new chief financial officer.
Reported after the market close, Google earnings came in at $1.89 per share, up 61% from a year earlier. Further, gross revenue rose 15% to $80.54 billion.
Analysts had predicted Google earnings of $1.51 per share on revenue of $78.7 billion.
The tech giant reports earnings under generally accepted accounting principles, also known as GAAP.
Google Stock: Cloud, YouTube Results Beat
Additionally, advertising revenue rose 13% to $61.66 billion, topping estimates of $60.44 billion.
Meanwhile, YouTube ad revenue rose 21% to $8.1 billion, beating estimates of $7.7 billion.
Google said cloud-computing revenue rose 28% to $9.574 billion, above estimates of $9.4 billion.
GOOGL stock holds a Composite Rating of 97 out of a best-possible 99, according to IBD Stock Checkup.
On the stock market today, GOOGL stock jumped more than 13% to 176.65 in extended trading.
“Maybe most important relative to the big after-hours move in the stock was margins came significantly ahead of expectations — 350 basis points above consensus which enabled a 25% EPS beat,” said RBC Capital analyst Brad Erikson in a report.
Further, Alphabet also announced a new $70 billion Google stock buyback.
Heading into the Google earnings report, the big-cap internet stock had advanced 11% in 2024. Shares gained in March on reports of a pending artificial-intelligence-related deal with Apple (AAPL). But Google stock retreated in Thursday’s regular session on worries over capital spending soaring as tech giants compete in generative AI.
Google is among AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
