SAN RAMON, Calif.: Googles digital advertising empire turned in another strong performance during the holiday shopping season, propelling a 36% increase in its corporate parents revenue during the final three months of 2021.
The results announced Tuesday underscore how technology giants have adapted to become even more successful during a nearly two-year pandemic that has roiled much of the economy.
In a show of confidence intended to make its shares more affordable, Google parent Alphabet also announced plans for its first stock split since 2014. If approved, the proposed 20-for-one split will reduce the price for each share this July while keeping Alphabet’s market value intact. Alphabet’s stock surged 7% in extended trading after the news came out.
Google stumbled during the early stages of the pandemic in 2020, causing it to suffer its first year-over-year decline in quarterly revenue.
But as government-imposed lockdowns led people to order more takeout and shop more online, Googles dominant online ad network became even more of a magnet for merchants trying to connect with consumers corralled at home.
In last years October-December period, Google raked in $61.2 billion in ad sales, a 33% increase from the same period the previous year.
As usual, Googles ad business accounted for the bulk of Alphabet’s profits. The Mountain View, California, company earned $20.6 billion, or $30.69 per share, well above the average estimated of $27.66 per share among analysts surveyed by FactSet Research. Revenue rose 32% from the previous year to $75.3 billion, eclipsing analysts’ predictions for revenue of $72.3 billion.
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