WELLINGTON: Larry Page’s five-year tenure as CEO of Google – and its newish corporate parent Alphabet – is reminding investors that patience pays off, despite a letdown in the first quarter. After lagging its peers in the early stages of Page’s reign, the Internet’s most powerful company has since delivered returns that trounced both the Standard & Poor’s 500 and Apple shares.
Since Page took the helm in 2011, Alphabet’s stock has soared 163 percent, creating an additional $300 billion in shareholder wealth. The S&P 500 rose 58 percent during the same period; Apple’s stock is up 115 percent.Some of Alphabet’s gains evaporated today after the company announced first-quarter earnings and revenue that fell below analyst projections.
Alphabet Inc. shares shed 4 percent in extended trading. Alphabet reported a 17.4 per cent rise in quarterly revenue, driven by strong advertising sales on mobile devices. Alphabet, the world’s No.2 publicly traded company by market capitalisation, said consolidated revenue rose to $US20.26 billion in the first quarter ended March 31, from $US17.26 billion a year earlier. Net income rose to $US4.21 billion, or $US6.02 per Class A and B share and Class C capital stock, from $US3.52 billion, or $US5.10 per share.
