Alphabet (GOOG) stock price is rising today after the company has published its earnings report for the first quarter of this year. The results are better than it was expected.Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) stock prices have gone up in the pre-market today and are rising now. This is because of its Q1 earnings report. Sources say that the stock prices of the technology giant went up as high as 6% at the news. Now GOOG is over 8% up.Alphabet Q1 Earnings ReportAlphabet subsidiaries are going strong at this time. The COVID-19 situation seems to be a catalyst for profits. Adjusted earnings of Alphabet per share reached .87 per share. Earnings reached .16 billion. YouTubes’ revenue also made a hit with .04 billion. Expectations were higher at .33. Actual revenues beat the
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Alphabet (GOOG) stock price is rising today after the company has published its earnings report for the first quarter of this year. The results are better than it was expected.
Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) stock prices have gone up in the pre-market today and are rising now. This is because of its Q1 earnings report. Sources say that the stock prices of the technology giant went up as high as 6% at the news. Now GOOG is over 8% up.
Alphabet Q1 Earnings Report
Alphabet subsidiaries are going strong at this time. The COVID-19 situation seems to be a catalyst for profits. Adjusted earnings of Alphabet per share reached $9.87 per share. Earnings reached $41.16 billion. YouTubes’ revenue also made a hit with $4.04 billion. Expectations were higher at $10.33. Actual revenues beat the estimates of $40.29 billion.
Amidst all this, certain trends are emerging at this time. Alphabet CEO Sundar Pichai has said that usage of its different services was much higher due to COVID-19. Ad revenues fell though. Pichai said:
“In March, we experienced a significant and sudden slowdown in ad revenue”.
This decline came as the coronavirus pandemic spread across the world. Most businesses have shut down due to the movement restrictions.
Alphabets’ CFO Ruth Porat, however, was positive about earnings. She stated:
“The decline in our Search and other ads revenue was abrupt in March, and although we’re seeing some early signs at this point that users are returning to more commercial behavior, it’s not clear how durable or monetizable that will be.”
This shows that as more people come online there will be new business models. Google is still the king of the hill when it comes to digital ads. People will turn to Google for advertising their products and services.
Most of Google’s new business will be digital or virtual. The reason for this is that the movement restrictions are expected to continue for many businesses. This will go on until a vaccine is found.
Like most companies at this time, Alphabet hasn’t given guidance for the next quarter. Porat reportedly said:
“As we move beyond the crisis, and the global economy normalizes, this should be reflected in our advertising revenues. But it would be premature to comment on timing given all the variables here.”
This shows that we are all in for a wild ride as far as the global economy is concerned. The COVID-19 situation hasn’t provided anyone with a clear focus for the future. Times like these provide a unique opportunity to adapt and move forward.
The new normal will ground some industries but liberate others. As the situation abates, the other industries will take off as well.
Google’s hardware unit and others are also looking up. Sources say that sales of its Pixel phone and other hardware generated revenue (including cloud) were at $4.44 billion.
The search engine giant though has a gaping hole in its armor. Its new products from RnD were at a $1.12billion loss. This may not remain the same as the business cycle of those units could shift at any time. Time will tell.
As at the time of filing this report, Alphabet (GOOG) stock price was at $1,339.50, +$105.83 (8.58%).
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.