Google Parent Company Alphabet Beats Earnings Expectations... Up 5.9% in After-Hours Trading

Google's parent company Alphabet posted better-than-expected results for the first quarter of this year, driven by increased advertising and steady demand for cloud services.

[Image source=Yonhap News]

According to major foreign media on the 25th (local time), Alphabet announced that its first-quarter revenue this year reached $69.79 billion. This exceeds the expert forecast of $68.95 billion. Revenue excluding partner payments also surpassed market expectations at $58.07 billion, compared to the forecast of $56.98 billion.

Net profit was $15 billion, and earnings per share were $1.17, also beating expectations. Initially, the market expected Alphabet's earnings per share to be $1.09.

This is the result of the search advertising business holding up well despite the economic recession and competition with rivals. Alphabet is pushing strong cost-cutting measures to maintain profits as advertisers reduce their budgets.

Evelyn Mitchell, senior analyst at Insider Intelligence, stated, "Search functionality will be an early indicator showing Google's ability to maintain dominance in the area that accounts for most of its revenue."

Additionally, Alphabet announced a $70 billion share repurchase plan. When a company buys back its own shares, the number of shares circulating in the market decreases, which is positive for the stock price.

After the earnings announcement, Alphabet's stock price surged. Alphabet closed the session at $103.85 and rose 5.9% in after-hours trading.

This content was produced with the assistance of AI translation services.