Google Sales Exceed Estimates, Alphabet to Undergo $50 Billion Share Buyback
Google parent company - Alphabet has exceeded Q1 estimates and announced a $50 billion share buyback.
Google ad sales surged 32% in the Q1 compared to a year ago, well above analyst expectations. Cloud sales have, in turn, increased 45.7%.
Alphabet's overall sales rose 34% to $55.3 billion, above analyst estimates of $51.7 billion, or 26% growth over last year's first quarter, when ad sales fell significantly in the final couple of weeks.
Alphabet’s quarterly profit rose 162% to $17.9 billion, or $26.29 per share, beating estimates of $15.88 per share. Earnings benefited from unrealized gains from venture capital investments and slower depreciation of some data center equipment.
The company's operating margin rose to 30% for the first time since incorporating as Alphabet in 2015.
The share repurchase authorization by Alphabet's board, on the other hand, follows a $25 billion buyback program announced in 2019. Jefferies analyst - Brent Thill estimated Alphabet now has $56 billion left for buying its shares.
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