Google’s 4Q Ad Sales Soar Again, Parent Plans To Split Stock

SAN RAMON, Calif. (AP) — Google’s digital advertising empire turned in another strong performance during the holiday shopping season, propelling a 36% increase in its corporate parent’s revenue during the final three months of 2021.

The results announced Tuesday underscore how technology giants have adapted to become even more successful during a nearly two-year pandemic that has roiled much of the economy.

In a show of confidence intended to make its shares more affordable, Google parent Alphabet also announced plans for its first stock split since 2014. If approved, the proposed 20-for-one split will reduce the price for each share this July while keeping Alphabet’s market value intact. Alphabet’s stock surged 7% in extended trading after the news came out.

Google stumbled during the early stages of the pandemic in 2020, causing it to suffer its first year-over-year decline in quarterly revenue.

But as government-imposed lockdowns led people to order more takeout and shop more online, Google’s dominant online ad network became even more of a magnet for merchants trying to connect with consumers corralled at home.

In last year’s October-December period, Google raked in $61.2 billion in ad sales, a 33% increase from the same period the previous year.

As usual, Google’s ad business accounted for the bulk of Alphabet’s profits. The Mountain View, California, company earned $20.6 billion, or $30.69 per share, well above the average estimated of $27.66 per share among analysts surveyed by FactSet Research. Revenue rose 32% from the previous year to $75.3 billion, eclipsing analysts’ predictions for revenue of $72.3 billion.