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Google reports tremendous growth of its quarterly sales surpassing all previous forecasts

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On Tuesday, Alphabet Inc (GOOGL.O), the parent company of Google, reported record quarterly sales that surpassed forecasts, as its internet advertising business grew as a result of consumers utilizing Google search while shopping online and advertisers increasing their marketing budgets.

In after-hours trading, Alphabet’s stock rose more than 8%, boosted by the company’s announcement of a 20-to-one stock split. The findings are the latest proof that the worldwide shift to a more digital economy has made Big Tech businesses more resilient to small-market shocks.

While soaring inflation, COVID-19 variations, and supply-chain constraints have scared Wall Street and harmed revenues at certain businesses, the companies that control major portals to e-commerce, hybrid work, and streaming entertainment have not witnessed a drop since the pandemic’s early days.

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In the fourth quarter, Alphabet’s sales increased by 32% to $75.3 billion, setting a new quarterly sales record and surpassing the average estimate of $72 billion among Refinitiv’s financial analysts.

On an earnings call, Google’s chief business officer, Philipp Schindler, claimed that consumers used Google to hunt for clothes and hobbyist products, while retailers, finance, entertainment, and travel advertisers increased their marketing budgets.

Analysts believe Google, which earns more money from internet adverts than any other corporation, is demonstrating that its expansion is unstoppable for the time being.

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Alphabet’s stock climbed 8.6% in after-hours trading to $2,990.10, erasing the company’s year-to-date losses. Facebook’s parent company, Meta Platforms Inc (FB.O), Twitter Inc (TWTR.N), Trade Desk Inc (TTD.O), and Snap Inc (SNAP.N) all saw their stock rise.

Investors will receive 19 more shares for each one held as of July 1 under the planned 20-for-one stock split. The stock will be more inexpensive and perhaps eligible for inclusion in additional market indexes as a result of the split, which is subject to shareholder approval.

In 2021, Alphabet’s overall spending surged by 27% to $178.9 billion, as the business resumed its pre-pandemic employment and construction pace. Greater legal expenditures, costs from a $1,600 one-time bonus for all employees, and an increase in philanthropic contributions as it matched increased giving by employees were all mentioned by the corporation.

One of Google’s major challenges is the numerous lawsuits accusing the corporation of anticompetitive behavior in the advertising and mobile app store marketplaces. To ease some of the fears, Google has previously stated that lowering Play app store fees will affect revenue.

In 2021, Alphabet’s cash hoard increased by over $3 billion to $139.6 billion, with another $50 billion spent on stock repurchases.

Other Bets, which includes self-driving technology business Waymo and other non-Google operations, had an operating loss of $5.3 billion in 2021, up from $4.5 billion in 2020. The unit’s financial projection for 2022 was not provided by the corporation.

also read:

AMD Radeon RX 6900 XT achieves new 3DMark World Record by single-handedly beating 4 GTX 1080 Ti GPUs

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.

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