Alphabet, Google’s parent company, introduces inaugural dividend payout: CEO Sundar Pichai shares message

Google-parent Alphabet has made a groundbreaking announcement by revealing a $70 billion stock buyback and its first-ever dividend in the company’s history. This move has sent shockwaves through the tech industry, with investors reacting positively to the news.

According to a report by Reuters, Alphabet will be offering a dividend of 20 cents for each share, a move that has driven the company’s stock to surge by nearly 16%. This increase has added a staggering $300 billion to the company’s net worth, pushing its market value past the $2 trillion mark.

This announcement comes on the heels of rival Meta Platforms’ decision to offer its first-ever dividend, which resulted in a $196 billion increase in the social media giant’s stock market value. With this move, Alphabet joins the ranks of tech giants like Meta in rewarding its shareholders with dividends.

During an investor call discussing the company’s last quarter results, Google CEO Sundar Pichai emphasized the importance of AI in driving search results. Pichai highlighted the increase in search usage among users engaging with AI-driven features, showcasing the company’s commitment to leveraging artificial intelligence in its core offerings.

Alphabet’s strong performance in the first quarter, beating expectations in sales, profit, and advertising, has been attributed to rising demand for its cloud services, increased adoption of AI, and steady advertising spending. The company reported a revenue of $80.54 billion, surpassing the estimated $78.59 billion mark, with advertising revenue alone increasing by 13% to $61.7 billion.

Overall, Alphabet’s strategic moves towards stock buybacks, dividends, and AI-driven innovations have positioned the tech giant for continued growth and success in the ever-evolving tech landscape.