Google parent Alphabet earned record profits for a third straight quarter during the ongoing health crisis, and announced a $50 billion share buyback as surging use of online services boosted its advertising and cloud businesses, The BBC reported Wednesday.
The results are the first indication that Google services may cling on to gains in terms of usage as a result of lockdowns and other pandemic restrictions that forced people to communicate and shop online over the last year.
The search-engine company posted a net income of almost $18 billion, or $26.30 a share during its fiscal first quarter, compared with a net income of $6.9 billion, or $9.87 per share, in the year-ago quarter, according to figures by Market Watch.
"Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained," The BBC quoted Alphabet and Google chief executive Sundar Pichai as saying.
Reflecting this revenue at Google's search business soared by 30% to almost $32 billion in the current quarter, while revenue at YouTube swelled to almost 50% to $6 billion.
Google ad sales rallied 32% in the first quarter compared with a year ago, beating Wall Street estimates. Cloud revenues rose 46%, in line with estimates, according to data from Refinitiv.
Google's board also approved the repurchase of up to an additional $50 billion of its Class C capital stock. The buyback follows a $25 billion repurchase program announced in 2019. Jefferies analyst Brent Thill estimated Alphabet currently has $56 billion in its balance sheet for buying its shares.
A surge in ad sales is also advantageous for Facebook, which reports its first-quarter results on Wednesday. Last week, Snap announced a 66% increase in quarterly revenue on strong ad sales.
Meanwhile, Apple is expected to report a strong second-quarter results with sales of almost $77 billion. In recent years, the consensus estimate on the company is that it's penetrating services and software because revenue from hardware is already saturated.
"Apple is firing on all cylinders," The Financial Times quoted Morgan Stanley analyst Katy Huberty as saying.
