Subscribe to our newsletter and stay informed

Check out our list of top companies

Check out our carefully compiled lists of the most relevant and impactful companies within their fields.

Check out our list of top unicorns

Read and learn about the biggest companies that various countries have produced, how they made it, and what the future looks like for them.

Alphabet Surges on Strong Earnings and Historic Moves

Alphabet's shares skyrocketed 10% on Friday following the company's release of first-quarter results
April 29, 2024

Alphabet's shares surged 10% on Friday following the release of better-than-expected first-quarter results, marking the sharpest rally since July 2015. The stock closed the day at $171.95, valuing Alphabet at over $2.1 trillion.

The company reported revenue of $80.54 billion, a 15% increase from the previous year and the fastest growth rate since early 2022, surpassing analysts' expectations of $78.59 billion in sales. Earnings of $1.89 per share exceeded Wall Street's estimate of $1.51 per share.

In a significant move, Alphabet's board authorized its first-ever dividend of 20 cents per share, to be paid on June 17 to all shareholders of record as of June 10. The company also announced its intention to pay future quarterly cash dividends and approved the repurchase of an additional $70 billion in stock.

Alphabet surpassed analysts' expectations for YouTube advertising revenue and Google Cloud revenue. Barclays analysts praised the company's balance of investment with efficiency and capital returns, maintaining an overweight rating on Alphabet stock and raising their price target to $200 from $173.

"Google is in the sweet spot of accelerating growth, expanding margins while shipping product faster, and returning capital — basically proving the naysayers wrong," they wrote.

Analysts at Oppenheimer also raised their price target to $205 from $185, emphasizing Alphabet's accelerating advertising business despite substantial spending on artificial intelligence.

Morgan Stanley analysts, retaining their overweight rating, increased their price target to $195 from $165, citing the company's core growth durability and "early success durably reengineering the cost base."

Following Alphabet's earnings, several other analysts also raised their price targets for the stock: JPMorgan to $200 from $165 and Evercore ISI to $200 from $160. 

Alphabet's impressive first-quarter results and the announcement of its dividend and buyback have fueled optimism among analysts, who expect the company's momentum to continue.

More about:  | |

Last related articles

chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram