GOOGLE'S 1ST QTR AD SALES ZOOMS 32%; ALPHABET’S PROFIT DOUBLES

Google’s digital advertising network has shifted back into high gear, with its corporate parent reporting profit that more than doubled after an unprecedented setback during the early stages of the pandemic, Michael Liedtke reported for the Associated Press (AP).

The robust first-quarter advertising growth announced Tuesday provides the latest sign that advertisers are expecting the economy to roar back to life as more people get vaccinated against COVID-19 and burst out of their pandemic cocoons.

Google’s sales surged 32% from the same time last year to nearly $45 billion during the January-March period. It’s the third consecutive quarter of accelerating ad growth for Google following an 8% decline during last year’s April-June period.

That marked the first time Google’s quarterly ad revenue had fallen from the previous year since the company went public in 2004.

The resurgence enabled Alphabet to easily surpass the analyst estimates that help set investor expectations. The Mountain View, California, company earned $17.9 billion, or $26.29 per share, more than double what it reported the same time last year.

The profit was inflated by an accounting charge of $650 million, or 97 cents per share. Total revenue, which also includes Google’s cloud-hosting service and device sales, climbed 34% from last year. Analysts had projected earnings of $15.76 per share on revenue of $51.5 billion, according to FactSet. The performance pleased investors, who drove up Alphabet’s stock by 4% in extended trading after the numbers came out.

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