Key Highlights
- Google net profit increased by 162% in first quarter of 2021.
- Consumer behavior is expected to change as vaccination is lifting the restrictions.
- Alphabet, Google’s parent company net profit reaches $17.9 billion in the first quarter of 2021.
Google generated profit in pandemic
During the pandemic people are facing lockdown and restrictions from the government. Citizens in the home started using more of Google services. As a result the net profit increased by 162 percent to a record $17.9bn in the three months to March as advertisement sales. In the first quarter, Google ad sales revenue increased by 32% year on year. It was above analyst forecasts monitored by Refinitiv. Cloud sales rose by 45.7 percent, as predicted. In extended trade, Alphabet shares Amazon.com gained about 4.3 percent to $2,390.10. check here.
Stay connected with Google
People have increased the use of Google Search and other online resources in the last year to keep updated, linked, and entertained. Google services such as search and YouTube could maintain the gains over the last year 2020 as lockdowns and other pandemic restrictions forced people to shop and interact online.
Google business touching the sky
In the first quarter of 2021, revenue from search and related companies totaled $31.9 billion. YouTube’s ad sales increased by 49 percent to $6 billion. Google Cloud sales increased to $4 billion, meeting Wall Street targets. In the first quarter, Alphabet earned $17.9 billion in net profits, or $26.29 per share, compared to $6.8 billion, or $9.87 per share in 2020.
Restrictions lifted, consumer behavior can change
By the end of the first quarter, approximately 17% of citizens in the United States will be vaccinated against COVID-19. After that in-person activities will be resumed. The amount they were spending with Google might be changed. The Alphabet Chief Financial Officer Ruth said, “It’s too early to forecast the extent to which these changes in consumer behavior and advertising spend will endure.”
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