Alphabet makes more money from digital advertising than any other company
Alphabet (NASDAQ:GOOGL), the owner of Google and YouTube, has more than doubled its profits as firms spent money on online advertising to get the attention of people working and playing online during the pandemic.
The company said it managed to surpass analysts’ expectations because of “elevated consumer activity online”.
Alphabet‘s revenues rose by 34% to $55.31bn in Q1, a new record, while its net profits increased to $17.93bn. Its share price could open at a new high today, The Times reported, after it jumped by 3.7% to $2,375 during after-hours trading.
The company’s valuation stands at $1.5trn, as it makes more money from digital advertising than any other company, selling space on Youtube, Google and its other websites.
Sales within the company’s Google search business increased by 30% to $31.88bn, while Youtube ad revenues rose by 49% to $6.01bn. Its rapidly-growing cloud computing division has seen a 46% jump in sales, getting to $4.05bn.
Alphabet’s board has confirmed it has given the go-ahead for a $50bn share buyback programme. The news has come as the company faces up to increasing pressure from regulators over its market dominance.