Wedbush's Dan Ives heaped praise on Google‘s parent Alphabet Inc GOOG GOOGL after the company beat revenue and earnings per share (EPS) estimates in its March 2024 quarter results.
What Happened: Ives expressed his admiration for Google following the company’s Q1 earnings, where it declared its first-ever dividend.
In an interview with CNBC, Ives described the results as “a quarter they should frame and put in the Louvre,” adding that he sees nothing negative in the report.
He also highlighted the positive implications for near-term growth and margin, as well as the management’s comments on search generative experience (SGE,) which should ease long-term investor concerns.
He concluded by noting that the AI and cloud story is now unfolding and increased the price target for Google to $205 from $175.
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Why It Matters: Alphabet reported a 15% year-over-year revenue increase to $80.539 billion, beating the consensus estimate of $78.594 billion. The company also reported quarterly EPS of $1.89, surpassing analyst estimates of $1.51.
During the company’s first-quarter earnings call, CEO Sundar Pichai expressed satisfaction with the development of the company’s Gemini AI, despite recent controversies. He highlighted the significant advancements made in the development of the Gemini AI and other models.
Pichai also addressed the changes in user behavior and the potential impact on the new Search experience given the integration of generative answers during the first-quarter earnings call, expressing confidence in the company’s ability to manage these challenges.
Deepwater Asset Management's Gene Munster applauded Google's $100 billion revenue projection, saying it's a sign that the company is "entering a new growth phase."
Price Action: Alphabet Inc.'s shares were up 11.80% in premarket trading on Friday, after closing at $157.95 on the previous day, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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