Google Boosts Record Alphabet Revenue; Shares Up 8%

Google parent Alphabet Inc. reported record quarterly sales that topped expectations on Tuesday (Wednesday, Feb. 2, 2022, in Manila), as its internet advertising business surged on consumers using Google search for online shopping and advertisers upping their marketing budgets, Reuters reported.

Photo Insert: Shares of Alphabet rose 8.6% in after-hours trading, to $2,990.10, erasing their losses for the year-to-date.

Alphabet's shares jumped more than 8% in after-hours trading, also rising on the company's announcement that it would undertake a 20-to-one stock split. The results were the latest to reinforce that the global trend toward a more digital economy has made Big Tech companies resistant to small-market shocks.

While concerns about rising inflation, COVID-19 variants, and supply-chain shortages have rattled Wall Street and hurt sales at some businesses, the companies that control key gateways to e-commerce, hybrid work, and streaming entertainment have not seen a dip since the early days of the pandemic.

Alphabet's sales jumped 32% to $75.3 billion in the fourth quarter, for a third straight quarterly sales record and topping the average estimate of $72 billion among financial analysts tracked by Refinitiv.

"The pandemic has handily accelerated the world’s reliance on digital advertising," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. "Sitting through traditional TV advert breaks or reading billboards suddenly feels completely archaic in the age of streaming and mobile phone addiction."

Shares of Alphabet rose 8.6% in after-hours trading, to $2,990.10, erasing their losses for the year-to-date. Shares of competitors in online ads including Facebook owner Meta Platforms Inc., Twitter Inc., Trade Desk Inc., and Snap Inc. all rose as well.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic