alphabet (GOOGL) on Thursday reported first-quarter earnings and revenue that handily beat consensus estimates. The company announced its first dividend, sending Google shares soaring.
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Google announced that 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.
Google’s after-hours earnings were $1.89 per share, up 61% from a year earlier. Additionally, gross sales rose 15% to $80.54 billion.
Analysts had forecast Google earnings of $1.51 per share on revenue of $78.7 billion.
The tech giant reports its earnings using generally accepted accounting principles, also known as GAAP.
Google Stock: Cloud, YouTube Results Beat
Additionally, advertising revenue rose 13% to $61.66 billion, beating estimates of $60.44 billion.
Meanwhile, YouTube advertising revenue rose 21% to $8.1 billion, beating estimates of $7.7 billion.
Google said cloud computing revenue rose 28% to $9.574 billion, topping estimates of $9.4 billion.
According to IBD Stock Checkup, GOOGL stock has a Composite Rating of 97 out of a best possible 99.
On the stock market today, GOOGL shares rose more than 13% to 176.65 in extended trading.
“Perhaps most importantly compared to the stock’s big after-hours move, margins were well above expectations – 350 basis points above consensus, driving EPS up 25%,” RBC Capital analyst Brad Erikson said. in a report.
Additionally, Alphabet announced a new $70 billion Google stock buyback.
The big internet stock is up 11% in 2024, according to Google’s earnings report. Shares rose in March on reports of an impending deal related to artificial intelligence Apple (AAPL). But Google shares fell in Thursday’s regular session on concerns about rising capital spending as tech giants compete in the generative AI space.
Google is one of the AI stocks to keep an eye on.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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