Following the release of its first-quarter 2024 financial report on Thursday, April 25th, Alphabet(GOOGL), the parent company of Google, exceeded market expectations with robust financial performance. The company reported total revenue of $805.4 billion for the first quarter, marking a remarkable 15% year-over-year growth, the fastest pace since early 2022, and surpassing market expectations of $790.4 billion. Adjusted earnings per share surged by an impressive 61.5% year-over-year to $1.89, up from $1.17 in the same period last year. Net profit saw a significant 57% year-over-year jump to $236.6 billion.
Alphabet’s cloud business recorded a strong performance, with first-quarter revenue soaring by 28.4% year-over-year to $95.7 billion. Meanwhile, the core advertising business, a key revenue driver for Google, also experienced solid growth, with first-quarter advertising revenue climbing by 13% year-over-year to $616.6 billion.
In a shareholder-friendly move, Alphabet’s board of directors approved a cash dividend of $0.20 per share to be paid on June 17th to shareholders of record as of June 10th. Additionally, the company announced its intention to continue paying quarterly cash dividends in the future. Furthermore, Alphabet authorized an additional $700 billion share repurchase program.
Buoyed by the better-than-expected performance across advertising and cloud revenues, as well as the historic announcement of quarterly dividends, Alphabet’s stock price surged over 15% to hit a new all-time high in after-hours trading.
Alphabet’s outstanding first-quarter results, coupled with its shareholder-friendly initiatives, underscore its position as a top growth stock to watch. With its diverse revenue streams and strong financial performance, Alphabet presents significant upside potential for investors seeking growth opportunities in the technology sector.