Google’s parent Alphabet Inc. piled up record profits for the third straight quarter during the pandemic. The company’s growth rate was driven by the engrossing ad sales catapulting shares 5% to a record high for the company after-hours trading on Tuesday. Alphabet reported huge beats at the top and bottom line for its first quarter of 2021, recording a humongous $55.31 billion in annual revenue. The shares were bolstered by the inculcation of the $50 billion stock buy-back, which boosted the scope of growth in the share markets.
Google’s revenue has been given a significant shift in the ad sales as it got stated at $6.1 billion versus the same tally last year situated at $5.70 billion. Alphabet CEO Sundar Pichai said on the company’s earnings call that YouTube’s TikTok competitor Shorts is garnering 6.5 billion daily views, a significant increase from 3.5 billion at the end of January.
During the course of the quarter, the substantial amount of growth was given a spike by certain investments as it recorded a gain value of around $4.84 billion. However, the company did not disclose or fabricate any information on how the company acquired such profits, but according to a research survey performed by the analysts UiPath, Stripe, and Oscar Health were all likely contributors.
The company is eager and does not waste time idly until it sells shares to recognize a gain, but instead uses “various valuation methodologies” to make “upward and downward adjustments to the carrying value of our equity securities as a result of observable price changes.”