Google Q1 results: ‘one of the best ways to invest in AI’

Alphabet Inc (NASDAQ: GOOGL) is trading up in extended hours after reporting better-than-expected results for its first financial quarter.

Google just announced a $70 billion buyback

Shareholders are also cheering $70 billion in share repurchase that Google authorised today.

The tech behemoth is reportedly working on an AI-powered search engine, code-named Magi. According to Gene Munster – Managing Director of Deepwater Asset Management:

CEO Sundar Pichai also reiterated today that artificial intelligence will play a pivotal role in the company’s immediate future.

Munster shares his view on Google stock

Year-to-date, Google stock is up nearly 20% at writing but Munster is convinced it has more room to run. On CNBC’s “Fast Money”, Munster added:

He expects the multinational to lower its headcount further moving forward that’ll also help on the cost side and be a possible catalyst for the share price.

Google Q1 financial highlights

• Net income printed at $15.05 billion versus the year-ago $16.44 billion
• Per-share earnings also declined a little bit from $1.23 to $1.17
• Revenue increased nearly 3.0% year-over-year to $69.8 billion
• FactSet consensus was $1.08 a share on $68.9 billion in revenue
• $11.72 billion of traffic acquisition costs (TAC) were less than expected

Other notable figures in the earnings report

Total advertising revenue came in at $54.6 billion – ahead of $53.7 billion expected and down only marginally from last year. YouTube contributed $6.69 billion to the ad sales in the recent quarter.

Other notable figures in the earnings press release include $7.45 billion in Google Cloud revenue that missed Street estimates by $40 million.

Wall Street sees upside to $124 in Google stock on average that signals a possibility of another 20% gain on top of the after-hours price action.