Mountain View’s Google-parent Alphabet Inc sets record profit, eyes $50bn buyback



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Mountain View’s Google-parent Alphabet Inc sets record profit, eyes $50bn buyback

Earlier this week, Google-parent Alphabet Inc., the Mountain View, California-based tech conglomerate, had posted record quarterly profits for a second successive quarter over Q1, 2021 that ended on March 31 and unwrapped a proposal to repurchase as many as $50 billion worth of shares, eventually leading to an upsurge of more than 6 per cent on Wednesday's pre-market trading.

So far this week, prices of Class A Alphabet Inc shares gained more than 5.6 per cent to $2,392.76 a per, proffering a persistent boost to a high-flying Wall St. Aside from that, on its quarterly earnings’ report, online advertisement mogul Alphabet Inc. had also added that its ad sales and usage might witness a slowdown over current quarter as people gradually began to resume in-person activities following a mass-scale acceleration in pandemic vaccination campaign in the United States, though, since online activities kept soaring over first quarter of the year, Alphabet Inc.

had smoothly beaten Wall St. estimates for quarterly revenues and had topped the sales record which it had clocked a quarter earlier.

Alphabet posts record quarterly profits, reveals plan of a $50bn buyback program

On top of that, according to Alphabet Inc.’s quarterly earnings’ report released earlier this week, the Google parent’s overall quarterly sales surged 34 per cent to $55.3 billion on a year-on-year, beating an analysts’ estimate of 26 per cent growth in sales, with Google’s ad sales and cloud sales jumped 32 per cent and 45.7 per cent respectively on an annualized basis.

Besides, Alphabet Inc. reported a quarterly profit of $17.9 billion or $26.29 per share over its fiscal first quarter that ended on March 31, surpassing a previous record of $15.2 billion registered a quarter earlier. Despite a remarkable rise in quarterly profits and sales over Q1, 2021, flagging concerns over consumers’ behaviour amid a pandemic-era new normalcy, Alphabet Chief Financial Officer Ruth Porat said in a post-earnings’ call with the analysts, “It's too early to forecast the extent to which these changes in consumer behaviour and advertising spend will endure.