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April 25 (Reuters) – Alphabet Inc (GOOGL.O) said on Tuesday it would buy back $70 billion in stock and posted first-quarter revenue above estimates as demand rose for cloud services and ad sales held up better than expected.

Investors cheered the buyback plan, sending shares of the Google parent about 4% higher in extended trading.

Advertisers, who contribute the bulk of Alphabet’s sales, have been shifting budgets to proven platforms such as Google’s products and its YouTube unit from untested advertising models.

Alphabet reported a slight dip in ad sales to $54.55 billion from $54.66 billion a year earlier. The decline is just the third in the company’s history since it became public in 2004 but follows a fourth-quarter drop of 3.6%.

The company, meanwhile, has been looking to keep a tight control on costs amid recession fears and had in January decided to cut about 12,000 jobs.

It has also been sharpening focus on artificial intelligence in its race to gain lost ground from Microsoft Corp’s (MSFT.O) Bing and the Windows-maker backed ChatGPT maker, OpenAI.

Revenue for the quarter ended March 31 stood at $69.79 billion compared with estimates of $68.95 billion, according to Refinitiv data.

It reported net profit of $15.05 billion for the first three months of the year compared with $16.44 billion a year earlier.

Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash’s interests include music, football (soccer), and Formula 1.

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Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world’s largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

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