Google Revenues Climb, in Encouraging Sign for Big Tech
April 28 2020 - 3:56PM
Dow Jones News
By Rob Copeland
Google's parent posted a sustained rise in revenue in the first
quarter, suggesting that Big Tech might weather the coronavirus
pandemic better than others in the corporate world.
Alphabet Inc., an online-advertising powerhouse, reported total
revenue of $41.2 billion for the first quarter, up 13% compared
with a year earlier. Though the company doesn't provide future
guidance for earnings and frequently diverges from market
expectations, this was a particularly strong reveal for a company
that has been a model of growth during its 22 years of
existence.
Analysts polled by FactSet had expected revenue of $40.8
billion. The company's shares gained 3% in after-hours trading
immediately after the release.
The Google results represent the first public hint of how the
major technology companies are faring in a troubled economy. The
conglomerate's many arms overlap with rivals like Amazon.com Inc.
and Facebook Inc. that have yet to report earnings.
Alphabet's profit came in at $8 billion, up from $6.6 billion a
year ago. The company makes most of its money from online
advertising in areas like search, where many major customers are
pulling back sharply in industries including travel and retail. The
company's YouTube unit, on the other hand, has an opportunity to
grab eyeballs, and perhaps associated advertising, from homebound
users turning to the video platform in lockdown.
Google's revenue has risen in every quarter of its history.
"People are relying on Google's services more than ever, and
we've marshalled our resources and product development in this
urgent moment," Alphabet CEO Sundar Pichai said in a statement.
Write to Rob Copeland at rob.copeland@wsj.com
(END) Dow Jones Newswires
April 28, 2020 16:41 ET (20:41 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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