Google-parent Alphabet (GOOGL) on Tuesday reported first-quarter earnings and revenue that topped estimates, including one-time expenses tied to cost cutting and higher investment income. GOOGL stock rose as digital advertising revenue was flat compared with a year earlier, but topped views.
Reported after the market close, Google earnings were $1.17 a share, down 5% from the year-earlier period. Google recorded $2.6 billion in one-time charges. The tech giant reports earnings under generally accepted accounting principles, also known as GAAP.
Further, gross revenue rose 3% to $69.79 billion.
Analysts had predicted Google earnings of $1.08 per share on revenue of $68.9 billion. A year earlier, Google reported earnings of $1.23 a share on revenue of $68 billion.
GOOGL Stock: Digital Advertising Flat
Meanwhile, advertising revenue was about flat at $54.55 billion versus estimates of $53.8 billion.
GOOGL stock rose 4% to near 108 in extended trading on the stock market today.
Google’s board of directors has authorized an additional $70 billion in stock repurchases. In the first quarter, the company repurchased $14.6 billion of its own stock.
Meanwhile, YouTube ad revenue dipped 2% to $6.69 billion but topped views amid lowered expectations. Analysts had estimated YouTube ad revenue of $6.6 billion. TikTok’s growth has pressured YouTube.
Google said cloud-computing revenue rose 28% to $7.45 billion, slightly missing estimates of $7.46 billion. Google’s cloud business posted revenue growth of 44% in the year-earlier period.
The Big Tech stock had advanced 19% in 2023 amid volatility in the Nasdaq.
GOOGL stock holds a Relative Strength Rating of 59 out of a best-possible 99, according to IBD Stock Checkup. Heading into the Google earnings report, shares traded 1% below an entry point.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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