Google parent Alphabet posts strong quarterly sales

• Alphabet overall sales increased 32% to $75.3 billion, beating estimates of $72 billion

• Shares of Alphabet rose 7% during after-hours trading to $2.948

Google parent Alphabet Inc (NYSE: GOOG) topped fourth-quarter expectations on Tuesday due to sharp increase in advertising and cloud business revenue.

Alphabet overall sales increased 32% to $75.3 billion, beating estimates of $72 billion, according to Refinitiv. The company posted revenue of $74.9 billion, compared to estimates of $71.652 billion.

Shares of Alphabet rose 7% during after-hours trading to $2.948.

Alphabet also announced 20-for-1 stock split that will go into effect in July this year, in which shareholders will receive a dividend of 19 additional shares.

Advertising revenue increased 32.5% to $61.2 billion in the quarter, compared to estimates of $57.1 billion.

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Google generates the most revenue from internet ads than any other tech company. Companies such as Amazon and TikTok have been stealing some share of the market from Google, but not enough to impact the leading position of Google.

Google Cloud increased revenue by 45% to $5.5 billion, above estimates of $5.4 billion.

Alphabet reported a fourth-straight quarter of profit as the fourth-quarter profit of the company was $20.6 billion on $30.69 per share, beating expectations of $27.56 per share

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For the year 2021, Alphabet profit increased by 89% to $76 billion, while sales rose 41%. Total costs increased 27% in 2021 to $178.9 billion due to hiring and construction.

Shares of the company have soared 43% over the last 12 months.

Picture Credits: Reuters