Google’s parent company Alphabet has reportedly more than doubled its profits after companies massively invested in digital advertising to reach people working and interacting online during the coronavirus pandemic.
The Times reports that profits at Google-parent Alphabet have more than doubled this year due to a major increase in advertising investment from companies attempting to reach people working online during the coronavirus pandemic.
Alphabet has been largely boosted by “elevated consumer activity online” as it again beat Wall Street’s expectations. The tech giant’s revenue jumped by 34 percent to $55.31 billion in a record-breaking first quarter, bringing its overall net profits to $17.93 billion.
Alphabet’s shares are now on track to reach a new high following the earnings report. Alphabet is now valued at more than $1.5 trillion and makes more money from digital advertising than any other company.
Alphabet sells advertising space on Google’s search engine and YouTube video platform among many other websites. Alphabet also develops smartphones and has businesses in the self-driving vehicle and healthcare industries.
Sales within Alphabet’s Google search business rose by 30 percent to $31.88 billion. YouTube’s advertising revenues increased by 49 percent to $6.01 billion. Google’s fast-growing cloud computing division saw a 46 percent jump in sales, hitting $4.05 billion.
The figures are released as Alphabet faces mounting scrutiny from regulators attempting to curb the company’s market dominance. Alphabet has further announced that its board approved a $50 billion share buyback program.
Other American tech giants saw impressive earnings this week, with Microsoft surpassing expectations amid continued demand for its Azure cloud computing service and Xbox video game consoles. Microsoft saw its revenue increase by 19 percent to $41.7 billion.
Microsoft CEO Satya Nadella commented: “Over a year into the pandemic, digital adoption curves aren’t slowing down. They’re accelerating and it’s just the beginning.”
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