Why Alphabet Stock Gained 15.9% in April
Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) climbed nearly 16% in April as the S&P 500 gained more than 12%. The optimism in the broad market and Alphabet coincided with a better outlook for the length of coronavirus stay-at-home orders in several states across the U.S.
Alphabet reported earnings in late April, and the results were better than expected. Revenue rose 13% from the same period a year ago. As people all around the world were staying home because of the coronavirus pandemic, many turned to YouTube for entertainment. The YouTube ads segment saw revenue jump by 33%.
Although there was a significant increase in Google Search usage, the activity shifted to less commercial topics. Additionally, there was reduced spending from advertisers. With most nonessential businesses closed because of the outbreak, there is a cutback in products and services to advertise.
Source Fool.com
