Alphabet Shares Are On Fire – Earning Show The Company’s Q1 Revenue Hit Wasn’t As Bad As Expected
Alphabet shares are on Fire. The company’s stock climbed more than 9% on Wednesday morning after it reported earnings that beat revenue expectations, easing investors’ fears about the pandemic’s impact on advertising.
The move in stocks adds more than $70 billion to its market cap, bringing it more than $927 billion. Analysts were heartened by executives’ comments suggesting the sharpest hit to revenues may be behind them.
CFO Ruth Porat said on the company’s analyst call there was a “abrupt” decrease in ad sales in March but Alphabet has yet to see “further deterioration in the rate of year-on-year declines in sales.”Porat said the company is also seeing “early signs” of users “returning to more business activity,” but cautioned that they still don’t know how long that activity will continue or if it will be monetizable.