Alphabet's stock surges on Triple Crown of first-ever cash dividend, $70 billion stock buyback, strong results
By Jon Swartz
Google parent Alphabet Inc.'s stock soared 12% in after-hours trading Thursday following huge spikes in revenue and net income that trounced analysts' predictions - as well as its first-ever cash dividend of 20 cents per share.
Alphabet's board also authorized the repurchase of up to $70 billion in shares.
Alphabet's cash dividend comes after Meta Platforms Inc.'s (META) board authorized its first-ever dividend in February. Amazon.com Inc. (AMZN) remains the only trillionaire company without a dividend.
The search-engine powerhouse reported a jump in first-quarter sales, chiefly through advertising, for total revenue of $80.54 billion, up 15% from $69.8 billion a year ago. Sales minus total acquisition costs (TAC) came in at $67.59 billion, compared with $58.07 billion a year ago.
Alphabet (GOOGL) (GOOG) reported first-quarter net income of $23.66 billion, or $1.89 a share, compared with net income of $15.05 billion, or $1.17 a share, in the year-ago quarter.
"Our results in the first quarter reflect strong performance from Search, YouTube and Cloud. We are well under way with our Gemini era and there's great momentum across the company. Our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation," Alphabet Chief Executive Sundar Pichai said in a statement announcing the results.
Analysts surveyed by FactSet had expected on average net earnings of $1.51 a share on revenue of $78.75 billion and ex-TAC revenue of $65.99 billion.
Shares of Alphabet were still surging as the company started a conference call with analysts and reporters - on pace for its biggest one-day spike since 2015, when it jumped 16%. Alphabet has gained $237 billion from Thursday's close, pushing its market cap to $2.19 trillion.
Google's total advertising sales was $61.66 billion, compared with $54.55 billion a year ago; FactSet analysts had average expectations of $60.3 billion. YouTube ad sales rose 21% to $8.1 billion from $6.7 billion a year ago. Google Cloud rang up $9.6 billion in sales, up $7.5 billion.
Alphabet did not break out AI revenue in Thursday's earnings report.
Shares of Alphabet have climbed 45% over the past 12 months. The S&P 500 index SPX has risen 22% in the past year.
-Jon Swartz
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-25-24 2017ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Markets Brief: Is It Really a Surprising Quarter for Earnings?
-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
Palantir Earnings: AI Platform Drives Strong Start to 2024
-
What I Hope My 14-Year-Old Learned at Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?
-
The 10 Best Dividend Stocks
-
3 Stocks With High Dividend Yields That Warren Buffett Likes
-
How to Invest Like Warren Buffett
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting