Alphabet's share price has advanced by nearly 10 per cent so far into today's trading session on an exceptionally robust earnings data for the fourth and final quarter of 2020. Google's parent company surpassed the initial market forecasts and broke out into uncharted territory.
Our projections for a continuation of the existing rally were ultimately fulfilled on better-than-expected earnings per share data. Alphabet posted EPS of $22.3 for Q4, which greatly exceeded the initially anticipated EPS of $15.89.
As was pointed out in our 'Weekly Expectations' update, the key metrics to watch for in Alphabet's quarterly report, besides the earnings per share numbers, were the revenue generated from the cloud and advertising.
Both segments registered considerable improvements on a year-to-year basis, which contributed to today's massive upsurge in the underlying price action.
Revenue collected from the cloud increased to $3.83 billion, whereas advertising revenue rose to $46.19 billion. Net revenue in the fourth quarter was recorded at &56.89 billion, up from last year's $46.07.
Alphabet Inc. CEO Sundar Pichai had this to say about the company's quarterly performance:
“Our strong results this quarter reflect the helpfulness of our products and services to people and businesses, as well as the accelerating transition to online services and the cloud. Google succeeds when we help our customers and partners succeed, and we see significant opportunities to forge meaningful partnerships as businesses increasingly look to a digital future.”
The Silicone Valley titian thus remained unscathed by the recent stock market controversy surrounding GameStop's short squeeze, and continues to advance further north into uncharted territory.
As can be seen on the hourly chart below, Alphabet's share price blasted after today's market open on the robust data and is currently outstripping the technological sector by far.