Alphabet CEO Sundar Pichai spoke at the Google I/O developers conference in Mountain View, California on May 10, 2023. Shares of Alphabet surged 10% on Friday morning following the release of better-than-expected first-quarter results, the announcement of the company’s first-ever dividend, and a $70 billion stock buyback.
The company reported revenue of $80.54 billion, a 15% increase from the previous year, surpassing analysts’ expectations. Earnings per share also exceeded Wall Street estimates at $1.89 per share.
Alphabet’s board authorized a dividend of 20 cents per share for shareholders of record as of June 10, with plans for future quarterly dividends. Additionally, the board approved a $70 billion stock repurchase.
The company outperformed in YouTube advertising revenue and Google Cloud revenue, leading analysts to adjust their price targets for Alphabet stock. Barclays, Oppenheimer, and Morgan Stanley all increased their price targets, highlighting Alphabet’s strong growth prospects and financial performance.
Overall, analysts are bullish on Alphabet’s future prospects, citing the company’s ability to balance investment with efficiency and capital returns. Numerous financial institutions raised their price targets for Alphabet stock in response to the positive earnings report.
Alphabet, the parent company of Google, saw a 10% increase in its shares following the release of better-than-expected first-quarter results. The company reported revenue of $80.54 billion, a 15% increase from the previous year. This marked the fastest growth rate since early 2022 and surpassed analyst expectations. Alphabet also approved its first-ever dividend of 20 cents per share and a $70 billion stock buyback. The company exceeded expectations for YouTube advertising revenue and Google Cloud revenue. Analysts praised Alphabet for its investment in efficiency, capital returns, and accelerating growth. Price targets for Alphabet stock were raised by Barclays, Oppenheimer, Morgan Stanley, JPMorgan, and Evercore ISI.
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