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Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images

Google's parent company Alphabet blew past Wall Street expectations on revenue and earnings per share during the first quarter, the tech giant said Tuesday.

Why it matters: Much of that growth can be attributed to YouTube, which grew its revenue by nearly 50% year-over-year last quarter.

  • The company's operating income margin also increased significantly from 19% in Q4 to 30% in Q1.

Details: The company, which started only recently to report revenues for some of its standalone businesses — like Google Cloud and YouTube — showed improvement in sectors other than standard search advertising.

  • YouTube brought in $6 billion for the quarter, more than 10% of its total quarterly revenue. The company revealed some compelling growth m
  • Google's "Other Bets" category, which consists of businesses like Nest and Waymo, jumped $47% year-over-year last quarter.
  • Google's Cloud business brought in $4 billion last quarter, which while slightly shy of Wall Street expectations, was still 5.6% higher than the previous quarter.

Be smart: The company also revealed some compelling growth metrics for its new TikTok rival "Shorts" on YouTube, noting that Shorts had 3.5 billion daily views through the end of April.

By the numbers, per CNBC:

  • Earnings: $26.29 per share vs. $15.82 per share expected
  • Revenue: $55.31 billion vs. $51.70 billion expected
  • Google Cloud revenue: $4.05 billion vs. $4.07 billion, according to FactSet estimates.
  • YouTube ads: $6.01 billion vs. $5.70 billion, according to StreetAccount.
  • Traffic Acquisition Costs (TAC): $9.71 billion  vs. $9.25 billion, according to FactSet estimates.

Go deeper

The stock market has gotten cheaper over the past year

Data: FactSet; Chart: Axios Visuals

A widely followed valuation metric suggests stocks have been getting cheaper over the past year, even as prices have surged to new highs.

Why it matters: When stocks rise and company market caps balloon, it’s tempting to think that the shares must eventually fall in order to get to more reasonable levels.

New York Times subscriptions continue to trend toward non-news products

Photo by Thomas Trutschel/Photothek via Getty Images

The New York Times on Wednesday said it added 142,000 paid digital-only subscriptions last quarter, 65,000 of which were for its non-core news products, like cooking, games and audio.

Why it matters: It's the highest percentage of non-core news subscriptions that The Times has added in its history. The Gray Lady has leaned more heavily into non-news products in recent years to offset news cycle turbulence.

Aug 5, 2021 - Health

The pandemic is now a "negative" for CVS

Expand chart
Data: Company filings; Chart: Axios Visuals

For every premium dollar that CVS Health's insurance arm, Aetna, collected in the second quarter, it paid a little more than 84 cents to medical providers — a "medical loss ratio" that was a lot higher than Wall Street expected.

The big picture: Health insurers were the main beneficiaries of the pandemic last year, as the widespread delay of doctor visits and procedures greatly offset what they had to pay for COVID-19 hospitalizations.

Now that routine care is back, and COVID-19 hospitalizations are on the rise again, CVS executives said the pandemic is a "modest negative" for the rest of 2021.