Richard Blake
@Richard.Blake · Posted 02 Feb. 2022

Google stock jumped as much as 8% in after-hours trading on Wednesday after the internet giant posted a stronger-than-expected quarterly report, fueled by stronger-than-expected ad sales. The company reported adjusted earnings per share of $13.73 on revenue of $31.1 billion, beating analyst expectations on both counts. The background: Google's parent company Alphabet has been raising the stakes in the race for digital ad dollars, with competitors like Amazon and Facebook intensifying the competition. The stakes: The digital ad wars have intensified the search for new sources of revenue for internet companies. The company said the impact of tariffs on its costs was immaterial, and that it didn’t expect the trade war to affect its long-term revenue growth. That’s good news for investors, who have been watching closely for signs that the trade war is hurting Alphabet’s results. The results were also a sign that the company's investments in digital advertising are paying off. Google's ad revenue soared 24% from a year ago, to $31 billion. 

Frank Lucas
@Frank.Lucas · Updated 02 Feb. 2022

Google's stock soared 8% in after-hours trading on Tuesday after the search giant delivered blockbuster second-quarter results fueled by strong ad sales. The results, which came in ahead of expectations, showed that the company's ad business is still booming despite the looming threat of antitrust action from regulators in Europe. The results also emphasized the strength of the broader digital ad market, with Alphabet's ad revenue up 24% from a year ago. All of this has investors betting that Alphabet will keep raising its dividend, which was increased for a sixth consecutive year. The results showed that Alphabet Inc.’s primary moneymaker remains red-hot, even as traders fret over the impact of U.S.-China trade tensions. The company hauled in $31.1 billion in sales and $10.3 billion in operating income in the quarter. Separately, Alphabet’s share buyback program will be expanded, the company said. The gains came mostly from the company's core search ads, which is a sign that the economy is strong enough for companies to invest in digital ads instead of traditional ones.