New digital communication and consumer habits drove advertising sales on Google during the last pandemic year. (Photo: iStock)
Alphabet, Google’s parent company, beat analysts’ estimates for its quarterly revenue report, thanks to lhe advertising sales increased by 32%.
The figures were more than encouraging when compared to the results of the first quarter of 2020.
Only in sales in the cloud, performance was 45.7% higher than expected by analysts, according to Refinitiv data.
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Alphabet, Google’s parent, grows in the pandemic
Alphabet shares rose about 4% to $ 2,375 in after-hours trading on Wall Street.
The results showed that Google and its services can generate revenue driven by new digital consumption and communication habits, bound by confinement restrictions due to the Covid-19 pandemic.
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Although at the moment it is not clear which industries drove Google’s growth in advertising and cloud sales, the truth is that lAlphabet shares jumped 80% in the last year, ranking 184th among companies in the S&P 500 index.
Quarterly earnings for Alphabet, Google’s parent company, rose 162% to $ 17.9 billion or $ 26.29 per share, beating estimates of $ 15.88 per share.
The authorization of a share buyback by Alphabet’s board follows a $ 25 million buyback program announced in 2019.
The Alphabet’s overall sales increased 34%$ 55.3 billion, above analysts’ estimate of $ 51.7 billion, equivalent to 26% growth over the first quarter of last year, when ad sales fell significantly.
How did Alphabet beat estimates?
Increased ad buying by companies travel companies and entertainment is a positive sign, as hotel booking services and movie studios are among the top spenders on Google.
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Google’s new consumer subscription businesses, such as an ad-free version of YouTube, could also catch the attention of analysts, as well as Google’s update on efforts to strike long-term cloud computing deals with retailers. or companies that bought services last year.