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Google Heavy ETFs Surge Following Upbeat Q1 Earnings
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Alphabet (GOOGL - Free Report) came up with better-than-expected first-quarter earnings on Apr 25 after market close. Earnings of $1.89 per share, surpassed the Zacks Consensus Estimate of $1.49 by 26.85%. This marks an improvement from earnings of $1.17 per share recorded in the same period last year.
GOOGL, which belongs to the Zacks Internet - Services industry, surged 11.5% in after-market hours on Apr 25. According to CNBC, after releasing results that surpassed analysts’ expectations, the surge in its shares propelled Alphabet's market capitalization beyond the $2 trillion mark.
Alphabet shares have added about 13% since the beginning of the year versus the S&P 500's gain of 5.84%.
Snapshot of Q1 Earnings
The tech giant posted revenues of $67.59 billion for the quarter ended March 2024, marking a substantial increase of 16.4% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $66.04 billion by 2.35%.
Alphabet’s net income saw a significant increase of 57.21% from the year-ago quarter to $23.66 billion. The company’s operating income for first-quarter 2024 was $27.89 billion, which marked an increase of 28.34% from the year-ago quarter.
Segment Snapshots
First-quarter revenues from Google advertising reached $61.66 billion, rising 13.04% from the year-ago quarter. The company’s revenues from YouTube ads increased 20.87% from the same quarter last year, hitting $8.09 billion.
Alphabet’s Google Cloud business witnessed a significant surge, with operating income skyrocketing to $900 million, more than quadrupling from the prior-year figure. Revenues from the segment also witnessed a rise of 28.44% year over year to $9.57 billion.
Dividend Increase Signals Investor Reward
Alphabet announced that its board has sanctioned a cash dividend of $0.20 per share, payable on Jun 17, 2024, to shareholders recorded as of Jun 10. Moving forward, Alphabet plans to uphold a quarterly cash dividend distribution policy.
Explore ETFs
The earnings results might have a huge impact on ETFs heavily invested in this Internet giant. Here, we have highlighted ETFs with double-digit exposure to Alphabet.
IShares Global Comm Services ETF seeks to track the performance of the S&P Global 1200Communication Services 4.5/22.5/45 Capped Index with a basket of 65 securities. The fund has gathered an asset base of $273.1 million and charges an annual fee of 0.42%.
IShares Global Comm Services ETF has an exposure of 14.14% in GOOGL. The fund has gained 12.83% over the past three months and 33.04% over the past year.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index with a basket of 22 securities. The fund has amassed an asset base of $17.76 billion and charges an annual fee of 0.09%.
Communication Services Select Sector SPDR Fund has an exposure of 13.31% in GOOGL. The fund has gained 12.71% over the past three months and 42.15% over the past year.
Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index with a basket of 116 securities. The fund has amassed an asset base of $3.94 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 13.02% in GOOGL. The fund has gained 11.66% over the past three months and 37.12% over the past year.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 110 securities. The fund has amassed an asset base of $1.06 billion and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 11.14% in GOOGL. The fund has gained 11.59% over the past three months and 36.55% over the past year.
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Google Heavy ETFs Surge Following Upbeat Q1 Earnings
Alphabet (GOOGL - Free Report) came up with better-than-expected first-quarter earnings on Apr 25 after market close. Earnings of $1.89 per share, surpassed the Zacks Consensus Estimate of $1.49 by 26.85%. This marks an improvement from earnings of $1.17 per share recorded in the same period last year.
GOOGL, which belongs to the Zacks Internet - Services industry, surged 11.5% in after-market hours on Apr 25. According to CNBC, after releasing results that surpassed analysts’ expectations, the surge in its shares propelled Alphabet's market capitalization beyond the $2 trillion mark.
Alphabet shares have added about 13% since the beginning of the year versus the S&P 500's gain of 5.84%.
Snapshot of Q1 Earnings
The tech giant posted revenues of $67.59 billion for the quarter ended March 2024, marking a substantial increase of 16.4% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $66.04 billion by 2.35%.
Alphabet’s net income saw a significant increase of 57.21% from the year-ago quarter to $23.66 billion. The company’s operating income for first-quarter 2024 was $27.89 billion, which marked an increase of 28.34% from the year-ago quarter.
Segment Snapshots
First-quarter revenues from Google advertising reached $61.66 billion, rising 13.04% from the year-ago quarter. The company’s revenues from YouTube ads increased 20.87% from the same quarter last year, hitting $8.09 billion.
Alphabet’s Google Cloud business witnessed a significant surge, with operating income skyrocketing to $900 million, more than quadrupling from the prior-year figure. Revenues from the segment also witnessed a rise of 28.44% year over year to $9.57 billion.
Dividend Increase Signals Investor Reward
Alphabet announced that its board has sanctioned a cash dividend of $0.20 per share, payable on Jun 17, 2024, to shareholders recorded as of Jun 10. Moving forward, Alphabet plans to uphold a quarterly cash dividend distribution policy.
Explore ETFs
The earnings results might have a huge impact on ETFs heavily invested in this Internet giant. Here, we have highlighted ETFs with double-digit exposure to Alphabet.
IShares Global Comm Services ETF (IXP - Free Report)
IShares Global Comm Services ETF seeks to track the performance of the S&P Global 1200Communication Services 4.5/22.5/45 Capped Index with a basket of 65 securities. The fund has gathered an asset base of $273.1 million and charges an annual fee of 0.42%.
IShares Global Comm Services ETF has an exposure of 14.14% in GOOGL. The fund has gained 12.83% over the past three months and 33.04% over the past year.
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index with a basket of 22 securities. The fund has amassed an asset base of $17.76 billion and charges an annual fee of 0.09%.
Communication Services Select Sector SPDR Fund has an exposure of 13.31% in GOOGL. The fund has gained 12.71% over the past three months and 42.15% over the past year.
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index with a basket of 116 securities. The fund has amassed an asset base of $3.94 billion and charges an annual fee of 0.10%.
Vanguard Communication Services ETF has an exposure of 13.02% in GOOGL. The fund has gained 11.66% over the past three months and 37.12% over the past year.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF seeks to track the performance of the MSCI USA IMI Communication Services 25/50 Index with a basket of 110 securities. The fund has amassed an asset base of $1.06 billion and charges an annual fee of 0.08%.
Fidelity MSCI Communication Services Index ETF has an exposure of 11.14% in GOOGL. The fund has gained 11.59% over the past three months and 36.55% over the past year.