Google becomes a dividend stock after Q1 earnings
Alphabet Inc (NASDAQ: GOOGL) says it performed better than Street expectations in its first financial quarter. Shares of the tech titan are in the green in after-hours.
Google stock rallies on solid ad revenue
Investors are rewarding the multinational partially on solid growth in ad revenue.
Google generated billion in $61.65 revenue from advertising in Q1 – ahead of billion that analysts had forecast. Ruth Porat – its chief financial officer said in a press release today:
Our strong financial results reflect revenue strength across the company and ongoing efforts to durably reengineer our cost base.
Wall Street currently has a consensus “overweight” rating on $GOOGL.
Watch here: https://www.youtube.com/embed/1klmATNNtXA?feature=oembedGoogle Cloud did well in fiscal Q1
Alphabet saw better-than-expected annualised growth in YouTube as well.
Also a positive was Google Cloud that brought in $9.57 billion in the recently concluded quarter. Experts, in comparison, were at $9.35 billion. According to CEO Sundar Pichai:
We are well under way with our Gemini era and there’s great momentum across the company.
Google stock is currently up more than 35% versus its year-to-date low.
Google Q1 earnings snapshot
- Earned $23.66 billion versus the year-ago $15.05 billion
- Per-share earnings also climbed from$1.17 to $1.89
- Revenue jumped 15% year-on-year to $80.54 billion
- Consensus was $1.51 a share on $78.59 billion in revenue
- Traffic acquisition costs of $12.95 billion were higher than expected
Google announced its first-ever quarterly dividend of 20 cents a share on Thursday. Its board also authorised another $70 billion in share repurchase, as per the earnings report. CEO Pichai also said on Thursday:
Our leadership in AI research and infrastructure, and global product footprint, position us well for the next wave of AI innovation.
This is a developing story. Check back in a few minutes for more updates!
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