Google parent announces stock buyback, modest beat on ad sales
Alphabet Inc said on Tuesday it would buy back $70 billion in stock and posted first-quarter profit and revenue above estimates as demand rose for cloud services and ad sales held up better than expected.
Investors cheered the buyback plan, sending shares of the Google parent as much as 4% higher in after-hours trade before they pared gains to trade up 1.6%. Demand rose for cloud services and Google’s ad sales held up better than expected.
Alphabet reported a slight dip in first-quarter ad sales from a year earlier to $54.55 billion, which nonetheless beat analyst estimates of $53.71 billion. It was the third such decline for the company since it went public in 2004, but was the second in a row following a fourth-quarter ad sales drop of 3.6%.
Excluding items, Alphabet reported earnings per share of $1.17, beating an average estimate of $1.07 per share.
“Google exceeded both revenue and earnings per share expectations this quarter, but reasons for investor optimism are modest,” said Insider Intelligence senior analyst Max Willens.
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