Google Alphabet has seen its profit rise in record numbers in the first quarter as people stay trapped at home in the pandemic using its many services.
Total profits jumped by 162% to a record $ 17.9bn in the three months to March as advertising revenue increased drastically.
It comes as the tech giant faces increased scrutiny over its power and the pandemic has people turning to the internet more than ever.
What Did The CEO Say?
The company has said “consumer’s online work” it responsible for its record results.
“Last year, people turned to Google Search and more online services to stay informed, connected and happy,” said Alphabet and Google chief executive Sundar Pichai.
Analysts were expecting a positive performance as the global economy continued to reopen, leading to more spending on online advertising.
COVID Factor
Reflecting this revenue at Google’s search business jumped by 30% to $31.9bn in the quarter , while sales at YouTube leapt 49% to $6bn.
Sophie Lund-Yates, a business analyst at Hargreaves Lansdown, said the Alphabet “lapped up the rewards from the pandemic like a big cat pouncing on cream”.
“While famous for its start-up culture and offices, this tech giant is, rather unspectacularly, an advertising business,” she said.
“Covid means that huge sums of money have shifted to online shopping, so the impenetrable Alphabet family of digital advertising businesses has already seen an increase in revenue.”
Controversial Investigations
The only problem facing the tech giant is the ongoing control of issues such as competition and privacy.
The latest controversy erupted on Monday when TV broadcaster Roku accused Google of engaging in counterfeit behavior to benefit its YouTube businesses and hardware.
In the meantime, American and European regulators continue to discuss tightening control of Google and other technology giants, but they still have to agree to the law.
After strong results, shares in the Alphabet increased by 4.5% in after-hours trading.
