Google has announced that it has authorised a new $7 billion stock repurchase after it was able to beat Wall Street's projections during it third quarter.
The company's mobile and video ad sales were what contributed to its increased earnings this quarter with a net revenue of 18.3 billion which was higher than the $18 billion that analysts were expecting. Google's net revenue was up by 21 per cent when compared to the same time period last year.
The company's Other Bets division also lost less money with a loss of $840 million compared to last year's $980 million. This division was even able to earn $197 million which is higher than where it stood in the previous year with earnings of $141 million.
Google's Other Bets have been criticised recently due to a number of executive departures and less investment from its parent company Alphabet. This division accounts for the company's more risky ventures which includes its high-speed Fiber service, Nest's smart home technology and other emerging technologies.
On Tuesday, Google Fiber announced that it would halt plans to expand into other US cities and that it would lay off nine per cent of its staff. The company's CFO Ruth Porat explained that it would still work to bring high-speed internet to more homes but would continue to do so through new wireless technologies. Porat offered further insight on how Google's moonshots will operate under Alphabet's corporate structure, saying: “As we reach for moonshots that will have a big impact in the longer term it's inevitable that there will be course corrections along the way and that some efforts will be more successful than others.”
Currently Google has over $80 billion in cash and securities and now is an excellent time for the company to announce a buyback. The company's latest buyback is larger than the $5 billion buyback that it announced last year.
Google will be dividing the stock purchases so that they take place on the open market as well as through privately negotiated deals.
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