GOOGL - Google becomes a dividend stock after Q1 earnings

2024-04-25 16:27:23 ET

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 .

Google 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 also announced its first-ever quarterly dividend of 20 cents a share on Thursday. Its board authorised another $70 billion in share repurchase as well, 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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