Alphabet (GOOG, GOOGL) saw its stock rise over 3% after reporting strong fiscal first-quarter earnings that surpassed expectations. The company also announced a 5% dividend increase and $70 billion in stock buybacks.
In Q1, Alphabet reported earnings per share of $2.81 on revenue of $90.2 billion, beating analyst estimates of $2.01 on revenue of $89.1 billion. Compared to the same period last year, Google’s advertising revenue rose to $66.8 billion, while its cloud platform revenue was $12.2 billion.
Google is one of the first major tech companies to report earnings since the “Liberation Day” tariff plan sent markets into a tailspin. Analysts expect digital ads to weaken in 2Q due to e-commerce slowdown and macroeconomic uncertainty.
The company’s recent antitrust losses also weigh on its stock. A US federal judge found that Google holds an illegal monopoly over online advertising, which could force it to sell or reorganize its ad business. This loss follows a similar ruling last year against Google’s search and ad businesses.
Despite these challenges, Alphabet’s strong Q1 earnings and dividend hike are a positive sign for investors.
Source: https://finance.yahoo.com/news/google-stock-rises-after-it-beats-on-earnings-raises-dividend-and-authorizes-70-billion-in-buybacks-192027323.html