Alphabet, Google’s parent company, hit a 52-week high in early trading on Wednesday after the company reported a sharp jump in earnings and a 34% rise in earnings.
Alphabet (GOOGL, GOOG) reported its first-quarter 2021 financial results on Tuesday after the close of trading, stocks responded with gains, and a number of investment firm analysts raised their share price targets.
The online ad giant made $ 17.93 billion in revenue in just three months, more than triple the $ 6.84 billion it earned a year ago.
Earnings per share jumped to $ 26.29 from last year’s $ 9.87, well above analyst estimates of $ 15.82.
Alphabet’s quarterly revenues rose 34% to $ 55.31 billion, also above the $ 51.5 billion analyst average. Alphabet’s quarterly earnings and earnings statistics for the past two years are available here.
Google’s ad sales jumped 32% year-over-year, sending an optimistic signal to investors. Analysts pointed to a rebound in advertising spending from travel, airline, restaurant and entertainment industries as more quarantine restrictions are lifted and economies recover.
The company noted the rapid growth of YouTube, with the world’s largest video platform generating $ 6.01 billion in revenue, up 49% from the previous year, versus an estimate of $ 5.7 billion.
Sales of the cloud division of Google Cloud also showed greater growth of 45.7%, increasing to $ 4.05 billion, which is slightly below the $ 4.07 billion expected by analysts.
“We are very pleased with the ongoing development of Google Cloud,” said Ruth Porat, Chief Financial Officer of Google and Alphabet.
Alphabet also announced a massive $ 50 billion share buyback program.