Google’s parent company is expected to shatter sales records with its largest-ever increase in quarterly revenue, fueled by a surge in digital ad spending that has strengthened the tech heavyweight even as regulators try to curtail its power.
The pandemic provided a jolt to Alphabet Inc.’s advertising business as more people shifted their lives online during a stay-at-home year, turning to Google search to find takeout meals and grocery-delivery options while clicking through videos on the company’s YouTube platform. Brands responded by shifting ad spending from print, television and in-store promotions to find customers across the Google universe.
Wall Street expects those trends to power Alphabet’s report on Tuesday, with analysts surveyed by FactSet anticipating first-quarter sales of about $51.51 billion and profit of $10.72 billion. The company posted $41.16 billion in revenue and $6.84 billion in profit during the year-earlier period, when advertising sales plunged as the coronavirus crisis crippled the global economy.
As the world’s digital ad leader, Google has been positioned to benefit from a broad wave of online ad growth sweeping across the economy. Smaller rival Snap Inc. last week reported a 66% increase in revenue on strong user growth and increased advertising, while Verizon Communications Inc. posted a 26% increase in ad sales.