News

Alphabet stock surges 10% on back of blowout earnings

0

In this article

GOOGL

Sundar Pichai, CEO of Google
Anindito Mukherjee | Bloomberg | Getty Images

Shares of Alphabet continued to spike in the premarket after the Google parent company reported blowout fourth-quarter earnings.

The company’s stock was up more than 10% in premarket trading.

Alphabet reported earnings per share of $30.69, compared to the $27.34 expected, according to Refinitiv. It also posted a large revenue beat, coming in at $75.33 billion compared to the $72.17 billion estimated.

The company relies heavily on Google’s advertising revenue, which jumped in the quarter. Revenue for the segment came in at $61.24 billion for the quarter, up 33% from $46.2 billion in the same period a year earlier.

“Very robust advertising revenue growth implies the overall demand environment has stayed healthy amidst volatile supply chain and macro uncertainties,” MKM Managing Director Rohit Kulkarni said in a note to investors.

The company’s cloud also reported revenue growth of 45% to $5.54 billion. Alphabet CEO Sundar Pichai said on the earnings call the company saw 65% year-over-year growth in the number of cloud deals worth over $1 billion.

The strong report led at least nine Wall Street firms to raise their price target on the stock. UBS’ Lloyd Walmsley, raised his price target to $3,900 from $3,800, representing an upside of 41.7% from Tuesday’s close.

Alphabet’s strong earnings report follows a year of outperformance. The stock surged 65% last year, beating all other Big Tech companies and more than tripling gains in the S&P 500. Alphabet on Tuesday said its board approved plans for a 20-for-1 stock split.

— CNBC’s Jennifer Elias contributed to this report.

Subscribe to CNBC on YouTube.

Here are Wednesday’s biggest analyst calls: Amazon, Sunrun, Facebook, Boeing, Etsy & more

Previous article

Massive winter storm grounds hundreds of flights across the U.S.

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News