(MENAFN) Alphabet, the American multinational conglomerate and parent company of Google, is on track to exceed a market value of two trillion dollars following its impressive performance in the first quarter. The company revealed profits and revenues that surpassed expectations, alongside significant strategic announcements, including its inaugural cash dividend of 20 cents per share and a massive USD70 billion share buyback program. With revenues soaring to USD80.5 billion in the first quarter, compared to USD69.8 billion the previous year, Alphabet surpassed analysts' projections of USD79 billion, underscoring its robust financial health.
Earnings per share surged to USD1.89, up from USD1.17 in the same quarter last year, significantly surpassing the average estimate of USD1.53 per share. In response to these stellar results, Alphabet shares surged by approximately 13 percent in post-close trading, propelling the company's market value by over USD250 billion. This surge places Alphabet in elite company alongside Microsoft, Apple, and Nvidia, as one of the few companies with a market value exceeding USD2 trillion within the United States.
A key driver of Alphabet's strong financial performance in the first quarter was the remarkable growth of its cloud computing unit, which recorded revenues of USD9.6 billion, marking a notable annual increase of 28 percent. Additionally, the company's search advertising revenue experienced a robust 14 percent growth, reaching USD46.2 billion, surpassing the average estimate of USD45 billion.
Alphabet's impressive earnings and strategic initiatives underscore its position as a dominant player in the technology industry. As the company continues to innovate and expand its offerings across various sectors, its market value is poised to soar, reflecting investor confidence in its long-term growth prospects and profitability.
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