Shares of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) soared in after-hours trading after the tech titan reported its Q1 results. Earnings per share came in at $1.89, which beat analysts’ consensus estimate of $1.51 per share.
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Revenue climbed 15.4% to $80.54 billion, beating expectations by $1.84 billion as ad revenue jumped to $61.66 billion from the previous $54.55 billion. Furthermore, Google Cloud grew from $7.45 billion to $9.57 billion year-over-year.
Interestingly, Alphabet announced its first-ever cash dividend of $0.20 per share. Although it’s a tiny amount relative to the share price, it indicates an evolution in how the company plans to return funds to shareholders. This is on top of an additional $70 billion buyback program.
Are Google Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 30 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 50% rally in its share price over the past year, the average GOOGL price target of $167.51 per share implies 7.19% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward GOOGL Stock Right Now?
Before you hurry to invest in GOOGL, think about the following:
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