Google just made a big change to its 2021 financial performance

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Google just made a big change to its 2021 financial performance

YouTube is the early star of Alphabet's financial performance in 2021.

After the close of the pandemic, Alphabet reported Tuesday that YouTube advertise profits jumped from 49% year-over-year to $6 billion as people continued to consume large amounts of content at home.The sales gain marked an impressive acceleration in growth for YouTube — fourth quarter sales in 2020 increased by 32% and became higher at 32% in the third quarter.

Brent Thill is the new TV, and Jefferies tech analyst Brent Thill wrote a new research note on Wednesday.It's ironic that the name YouTube refers to angled TVs that existed before flat screeners exist.YouTube on linear TV is now the go-to video viewing experience instead of connected TVs, and ad budgets are slowly moving up the page.

While Alphabet shined in the quarter, YouTube.com turned in a stellar start to the year overall.The operating profit margins in the fourth quarter rose to 36% from 230 basis points.Search was up 30.1% and GoogleGoogle Cloud revenue increased 30.6%.

Here is how Google performed compared to Wall Street estimates for the first quarter of 2016.

None Q 1 GAAP profit per share: $26.29 vs. $15.64 expected and $10.79 year over year?

To cap off the new earnings release, Google revealed a $50 billion stock buyback from Google.

Alphabet extending its case among the most compelling ideas in our coverage, Guggenheim Securities analyst Michael Morris said in a client note.Morris has maintained his $700 price target on Alphabt to $2,850 from $2,400 and adjusted a Buy rating.

The outlook on Alphabet's quarter and outlook by Analysts Thill and Morris was echoed throughout the street by others.

We come away from the 1Q print more bullish on the medium term market and margin outlook for Alphabet, both in the core Google services business as well as Cloud, said Deutsche Bank analyst Lloyd Walmsley, who now has a $3,050 price target on this stock with a Buy rating.

Brian Sozzi is an editor at Yahoo Finance and an anchor at the large-scale Yahoo Finance.Follow BrianSozzi on Twitter and on LinkedIn

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