What's Alphabet Going to Do With All Its Cash?

Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) got 2021 started right. For a first quarter when it was just beginning to lap the depressed financial results of 2020, the Google parent posted revenue growth of 34% and net income gains of 162%. Though it's already one of the largest companies in the world, the tech giant is showing no signs of slowing down.

Also worth noting: It has at its disposal net cash, equivalents, and short-term investments of over $121 billion on the balance sheet. Free cash flow is also on the rise (to more than $13.3 billion during the first three months of the year), which continuously adds to the company's war chest. That might seem like an unspendable figure, but Alphabet is finding lots of uses for its cash.

The digital advertising world is changing. Apple recently rolled out an operating system update that requires users to actively opt in to allow app and online activity tracking. Given the explicit choice, most of its device users are likely to opt out.

Source Fool.com