TECH - Alphabet Joins $2T Club More Growth Likely: ETFs to Win | Benzinga
On Apr 26, 2024, Google-parent Alphabet Inc. (NASDAQ: GOOGL) officially joined the prestigious $2 trillion club, making it the fourth U.S. company to achieve this market-capitalization milestone. On Apr 26, Alphabet's shares surged 10.2% in its most significant daily climb since July 2015, as reported by Dow Jones Market Data, as quoted on MarketWatch.
This substantial increase drove the stock to a new record high and pushed Alphabet's outstanding shares past the $2 trillion threshold for the first time. Among U.S. companies, only Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT) and NVIDIA Corp. (NASDAQ: NVDA) have previously attained a valuation exceeding $2 trillion.
The scenario puts focus on Alphabet-heavy ETFs like iShares Global Comm Services ETF (ARCA:IXP), Communication Services Select Sector SPDR Fund (ARCA:XLC), Vanguard Communication Services ETF (ARCA:VOX) and Fidelity MSCI Communication Services Index ETF (ARCA:FCOM). These ETFs put 14% to 11% share in the stock. With Alphabet's upbeat prospects, the ETFs, too, should benefit.
Inside Q1 Earnings Snapshot
Alphabet's first-quarter 2024 earnings of $1.89 per share beat the Zacks Consensus Estimate by 26.8% and year-ago earnings by 61.5%. The tech giant posted revenues of $67.59 billion for the quarter ended March 2024. The top line surpassed the Zacks Consensus Estimate of $66.04 billion by 2.35%.
Solid Beat Across Most Main Segments
Revenues from the Google Services business increased 13.6% year over year to $70.4 billion, beating the Zacks Consensus Estimate of $69.04 billion. Under this business, search revenues ...