Alphabet shares set to hit new highs at the open after bumper Q4 results

Alphabet boss credited the company's investments in artificial intelligence for the strong showing, together with a record quarter for its Pixel phones and cloud business.

Excluding partner payouts, Alphabet's total sales surged by roughly a third over the three months ending on 31 March to reach $61.9bn (consensus: $59.4bn), despite the disruptions to ad revenues because of Omicron.

Net income meanwhile jumped by a quarter to $20.26bn or $30.69 per share, easily surpassing analysts' estimates for $27.35.

Markets also cheered a 20-1 stock split that was meant to make the shares more attractive for small investors.

The company's internet advertising fared well as people spent more time online, more than offsetting the hit to travel and retail ad dollars as a result of the pandemic.

Its YouTube revenues were also impacted negatively by Apple's decision to limit targeting on iPhones.

Google's cloud unit on the other hand did well, posting in $5.54bn in quarterly sales, bolstered by the acquisition of new clients such as CME Group.

As of 1313 GMT, shares of Alphabet were ahead by 10.27% at $3,035.60.