Alphabet Inc. GOOG GOOGL CEO Sundar Pichai has projected that the company’s YouTube and Cloud businesses will generate a combined revenue of $100 billion by 2024.

What Happened: The forecast was made by Pichai during the first quarter earnings, according to Gene Munster of Deepwater Asset Management, posted on social media platform X on Thursday. This projection suggests a 25% growth rate for each of the next three quarters, despite YouTube’s 21% and 28.4% growth in March.

Munster noted, “Maintaining growth rates around 25% despite larger numbers is a sign Google’s entering a new growth phase.”

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Why It Matters: This announcement comes on the heels of Alphabet’s Q1 earnings report, which revealed a 15% year-over-year increase in revenue to $80.539 billion. The company also reported quarterly earnings of $1.89 per share, surpassing analyst estimates.

Earlier in April, Meta Platforms Inc. took a page out of Google’s playbook by opening up its Quest operating system to third-party hardware manufacturers. This move was a result of Meta’s investments in mixed reality, starting with Oculus in 2014 for $2 billion.

Despite facing internal criticism and AI-related challenges, Alphabet has once again secured the top position in the list of “America’s Most Innovative Companies 2024.” This is a testament to the company’s resilience and continued innovation under Pichai’s leadership.

Price Action: Alphabet’s Class C stock rose 11.43% in after-hours trading to $176.23. Similarly, Class A stock rose 11.56% to $174.04, as per data from Benzinga Pro at the time of writing.

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