Google Stock Makes the Bull Break on Q1 Earnings Beat, $70B Buyback
Alphabet, the parent company of Google, reported impressive Q1 earnings, which led to a significant after-hours spike in GOOGL stock...
Quick overview
- Alphabet reported strong Q1 results with total revenue of $90.23 billion, a 12% year-over-year increase.
- Net income surged to $34.54 billion, significantly exceeding last year's figures and analyst expectations.
- The company announced a $70 billion stock repurchase program and raised its quarterly dividend by 5%, boosting investor confidence.
- GOOGL shares broke through key technical resistance, indicating potential for further upside in the coming weeks.
Alphabet, the parent company of Google, reported impressive Q1 earnings, which led to a significant after-hours spike in GOOGL stock, indicating a resurgence of market confidence.
Earnings Beat Across the Board
Alphabet’s first-quarter results delivered an emphatic message: the company is firing on all cylinders. Total revenue rose to $90.23 billion, representing a 12% increase year-over-year and topping analyst consensus compiled by Visible Alpha. The bottom line was even more impressive. Net income ballooned to $34.54 billion, or $2.81 per share, far surpassing last year’s $1.89 per share and beating even the most bullish analyst estimates.
A key driver of this performance was the robust growth in the company’s core segments. Revenue from Google’s Search & Other division climbed 10% to reach $50.7 billion, while Google Cloud continued its expansion with a 28% year-over-year increase, delivering $12.3 billion in revenue. CEO Sundar Pichai credited this surge to rising user engagement, noting that AI Overviews—a feature rolled out as part of Google’s search experience—now serves 1.5 billion users each month.
Adding to the bullish tone, Alphabet announced a massive $70 billion stock repurchase program, reinforcing investor confidence in the company’s capital strength. Additionally, the firm raised its quarterly dividend by 5%, increasing the payout to $0.21 per share, signaling a growing commitment to shareholder returns.
Technical Picture Points to Further Upside
GOOGL shares experienced a sharp decline earlier in Q1 2025, shedding around 30% from January highs. However, long-term technical support held firm, with the 200-week simple moving average (SMA) acting as a floor for the stock. This zone served as a launching pad for a recovery that began in early April, initially fueled by a temporary easing of trade restrictions and improved investor sentiment.
Google Stock Chart Weekly – The 100 SMA Is Now Broken
After bouncing from around $140, shares moved steadily toward $150, but met resistance at the 100-week SMA (gray), which capped gains for three consecutive weeks. Thursday night’s breakout decisively cleared that barrier, pushing the stock past $170 in after-hours trading. This breakout not only confirms the bullish reversal but opens the door for further upside potential in the coming weeks.
Conclusion: Momentum Returns to Alphabet
Alphabet’s Q1 earnings have reinvigorated investor enthusiasm, triggering a powerful after-hours rally and validating the company’s renewed focus on AI and cloud services. With strong earnings growth, expanding user engagement, a major buyback program, and technical support from long-term moving averages, GOOGL appears well-positioned to continue its upward trajectory. This marks a clear return to bullish form, and with Wall Street analysts likely to revise forecasts upward, Alphabet may once again become a leading force in the broader tech rally of 2025.
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