The Alphabet of Google’s parents said it would buy shares worth $ 70 billion and increased its dividend by 5 percent, since it reported the profits of the first quarter above the expectations of Wall Street on Thursday.
The shares increased 4 percent in extended operations, which added around $ 75 billion to the company’s market value.
Alphabet exceeded quarterly income estimates, benefits from constant growth in his digital advertising business, which helped compensate the growth off in his cloud computing unit.
The commercial policy of the president of the United States, Donald Trump, has caused the concerns of an economic recession, leading companies to rethink their advertising expenses. But analysts say that the digital advertising market was still firm in the first quarter.
Google advertising business revenues, which represents around 75 percent of its general revenues, increased 8.5 percent to $ 66.89 billion in the quarter, a slowdown in the 10.6% increase in the previous quarter, but even above the expectations of analysts of the expectations of expectations.
Google Cloud reported a 28 percent increase in revenues to $ 12.26 billion, which decreased the growth of 30.1 percent reported in the previous quarter. Analysts expected the unit to report revenues of $ 12.27 billion, according to LSEG data compilation.
The company reported total income of $ 90.23 billion for the first quarter, compared to the average estimate of analysts of $ 89.12 billion, according to the data compiled by LSE.
The net income of the first quarter was $ 34.54 billion, Wall Street size expectations or $ 24.85 billion.
Posted on April 25, 2025