Shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOGL) are up over 5% in pre-open trading Wednesday after the company crushed analysts’ estimates for Q1 for profit. Alphabet also announced a massive $50 billion buyback program to further boost its shares.

Alphabet said it made $26.29 per share in Q1 to absolutely smashing the $15.82 per share consensus. Revenue came in at $55.31 billion, representing a 34% jump YoY, to top the $51.70 billion expected.

“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations,” Sundar Pichai, CEO of Google and Alphabet, said.

In other segments, Alphabet said its Google Cloud business generated $4.05 billion in revenue, which is modestly lower than the $4.07 billion expected. YouTube has continued to witness rapid growth with the world’s largest video platform generating $6.01 billion in revenues - which marks a 49% jump YoY - vs $5.7 billion expected.

The main driver of the jump in sales was soaring ad spending in Q1 as Alphabet reported $44.68 billion in revenue vs $33.76 billion reported a year ago. YouTube’s Shorts features have nearly doubled their viewership base from 3.5 billion to 6.5 billion daily views.

“Total revenues of $55.3 billion in the first quarter reflect elevated consumer activity online and broad based growth in advertiser revenue. We’re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace,” Ruth Porat, CFO of Google and Alphabet, said.

Google said that its profits were boosted by $4.84 billion in unrealized gains from specific investments in startups.

Morgan Stanley analyst Brian Nowak hiked the price target to $2,575.00 per share from $2,350.00 following the Q1 earnings beat. He also raised the bull-case target to $3,006.

The analyst shared five reasons bull case coming into view.

1) Why 8% Search beat so meaningful from micro/macro perspective;

2) Travel recovery just starting;

3) YouTube e- comm opportunity starting to show;

4) A 50% ($4bn+) FCF beat;

5) Increased capital returns ($50bn buyback).

“From a macro perspective, in our view, this acceleration speaks to the strength of e-commerce and structural shift of consumer time/dollars online. On the ads side, this is a positive read for FB and AMZN advertising, and bigger picture, it is also a positiveread across to othere-commerce players including EBAY, AMZN, W, ETSY, other marketplaces, and traditional retailers' online businesses,” Nowak wrote in a note.

Similarly, Susquehanna analyst Shyam Patil raised the price target from $3,000.00 to $3,100.00 on strong acceleration in search and ad spending.

“Search and YouTube put up another big quarter, and we see the strength continuing. While GOOGL will likely benefit from an easy comp in 2Q, the comps do get tougher in 2H. That said, the recovery in travel should be a tailwind (we estimate was 10% of search pre-COVID), and the iOS 14 changes shouldn’t be as much of a headwind as potentially with other walled gardens. We continue to remain positive on: 1) the secular ad growth story driven by mobile search and YouTube, 2) the Cloud ramp, 3) generally better expense management, and 4) a more shareholder-friendly capital allocation approach,” Patil said in a note issued to clients.