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Alphabet recently partnered with Virtusa Corporation to enhance operational capabilities through Google Cloud, which complements an increase in its Q1 2025 sales and net income, reflecting positive business momentum. During the same period, the company declared a quarterly dividend and expanded its share buyback plan, signaling robust shareholder-friendly initiatives. While this was happening, the broader market, including other tech giants, experienced gains due to strong earnings and AI investment plans, which buoyed tech stocks. As a result, Alphabet's 1.10% price move aligns with the broader market trend, underpinned by several supportive corporate actions.
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The collaboration between Alphabet and Virtusa aims to enhance operational efficiencies via Google Cloud, reinforcing Alphabet's sales and net income growth trajectory noted in Q1 2025. This partnership could further bolster Alphabet's strategic expansion in AI technologies, potentially driving higher user engagement and ad revenue increases. Over the past five years, Alphabet's total return, which includes both share price appreciation and dividends, was 133.06%. This highlights significant long-term growth and value creation for shareholders.
In the context of the most recent year, Alphabet's stock underperformed both the broader market and the Interactive Media and Services industry, despite showing substantial annual earnings growth of 34.7% last year. As Alphabet continues to innovate with AI and expand its Google Cloud offerings, these developments may support ongoing revenue and earnings growth, aligning with analysts' projections. With the current share price at US$151.47, it's trading at a significant discount to the consensus price target of US$203.44, indicating an anticipated upside potential based on analysts' forecasts. The company's leadership in AI, coupled with Waymo's advancements, might serve as catalysts for future financial outcomes and shareholder returns.
Gain insights into Alphabet's historical outcomes by reviewing our past performance report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.