Alphabet, the new holding company for Google, impressed Wall Street on Thursday when it announced strong third quarter earnings and a $5 billion stock buyback program.
Shares at the company increased by 10% in after-hours trading.
According to Alphabet, the company earned $7.35 per share on revenue of $18.68 billion. Analysts expected $7.21 earnings per share and $18.54 billion in revenue.
The company’s buy back program is focused on $5 billion in Class C capital stock.
The conference call marked the final time that Google will report its earnings across all businesses as a single unit. Alphabet was designed to break apart Google’s holdings into businesses that each focus on different areas of technological advancement.
Speaking on behalf of Google, CEO Sundar Pinchai placed a lot of emphasis on mobile. “If you’re looking for info that lives within an app, we’ll surface the result and even give you an install link,” he said. He also cited the upcoming release of YouTube Red, a premium subscription where users can pay $10 per month to use YouTube in the background, offline and without ads.
Last quarter Alphabet’s new CFO Ruth Porat impressed investors with her promise to become more transparent. Google on that day added $65 billion in market value, the largest one-day increase in the history of any stock market.
Paid clicks grew 23% and cost per click dropped 11%year over year. Porat said the drop in cost per click is a result of increased views on YouTube, where clicks are less expensive.
Here’s proof that Alphabet is run by a team of super nerds. They bought back $5,099,019,513.59 in shares. That number is the square root of 26, and the alphabet has 26 letters.