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Summary
- Google’s shares have surged by 450 bps in the afterhours of trade.
- The rally has been triggered by a massive buyback.
- Alphabet Inc has announced blockbuster quarterly results
The shares of technology giant Alphabet Inc (NASDAQ:GOOG) surged by 4.4% in the afterhours of trade on the back of massive buyback by the company.
The shares of the company are currently being traded at US$2,391.5 per scrip, up 4.4% from the market close of Tuesday.
Beating the market estimates, Alphabet Inc (NASDAQ:GOOG) has announced blockbuster results for the quarter end March 31, 2021, along with a buyback of shares.
The surge in the share prices was a result of the company announcing buyback of its shares amounting to a total of US$50.0 billion for its Class C capital stock.
The free cash flow of the company, which is a key determinant of the buyback, stood at US$13.35 billion, almost 2.5 times of US$5.45 billion, a year ago.
Alphabet, which owns Google, reported its topline surging by 34% to US$55.31 billion in March 2021 quarter from US$44.16 billion a year ago. The street was expecting Alphabet revenues to be around US$51 billion in the quarter.
The revenues from Google services jumped to US$51.18 billion in January-March period, compared with US$38.20 in the corresponding quarter last year. On the other hand, the revenues from Google Cloud surged to US$4.05 billion in the quarter under consideration, from US$2.78 billion a year ago.
As the operating expenses of the company grew at a far lesser rate to US$38.88 billion, the operating margins – a key metric for any tech firm – surged to an astounding 30% from 19%.
The net earnings of the company almost tripled on a year-on-year basic, growing from US$6.84 billion to US$17.93 billion.
Also read: Microsoft’s (NASDAQ:MSFT) Q3 Net Profit Up 44% On Cloud Growth
“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We have continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations," said Sundar Pichai, CEO of Google and Alphabet.
