Alphabet Inc introduces its first share buyback and beats Wall Street's profit forecast with higher EPS, sending the stock to its highest-ever level in after-hours trading.

Google’s newly formed parent entity Alphabet Inc., has apparently beaten analysts predictions with more earnings per share and revenue. In addition, the new holding company has also introduced its first-ever stock buyback option for investors, making it the first time Google has returned cash to its investors in its 11 year history since being listed as a public entity.

Alphabet reported its third quarter earnings and revenue results on Thursday, with an EPS of $7.35 on a revenue of $18.68 billion, while analysts had earlier predicted about an EPS of $7.21 on $18.53 billion in revenue.

Meanwhile, advertising revenue in the quarter rose up by 16 percent year-over-year to $13.09 billion for its owned properties. Total ‘paid clicks’ went up by 23 percent, year over year, up by 6 percent compared to earnings of the previous quarter. While, the average cost per click declined by 11 percent in the quarter.

“Our value proposition to markets of all sizes is simple. Google can help you show the right ads to the right people at the right moment,” said Google CEO Sunder Pichai.

Shares of Alphabet Inc. rose almost by 9 percent ($58.86) in after-hours trading to $741, which is a record. If this growth remains constant, it will make Alphabet the second most valuable company after Apple Inc. in the S&P 500 list of companies.

To recall, Google co-founders Larry Page and Sergey Bin announced the creation of parent holding Alphabet Inc. in August this year. Page during the announcement said that the newly formed entity signifies a collection of companies, the largest of them being Google.

The move also meant, that there’ll be a massive financial restructuring within the company. As Alphabet Inc. now becomes the public entity on the Wall Street, implying that all shares of Google were automatically converted into shares of parent company Alphabet. Financial analysts that time were rather impressed with Page’s new move, as it gives investors and shareholders more transparency about the company’s other initiatives.

Notably, right after Alphabet was announced, shares of Google saw a spike of 5 percentage points and rising even further to 6 percent during after-hours trading.

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