Alphabet’s valuation to exceed $2 trillion as search giant declares inaugural dividend

Alphabet, the parent company of Google, made waves in the tech world with its first-quarter financial results. The company reported a 15% increase in revenue, reaching $80.5 billion, surpassing analysts’ expectations. This strong performance led to Alphabet’s first-ever dividend of 20 cents per share and a $70 billion stock buyback.

The news sent Alphabet’s shares soaring by as much as 13% in after-hours trading, potentially adding over $250 billion to its market capitalization and pushing it above the $2 trillion mark. This would put Alphabet in the league of tech giants like Microsoft, Apple, and Nvidia.

Alphabet’s CEO, Sundar Pichai, attributed the strong performance to the success of its core businesses, including Search, YouTube, and Cloud services. He highlighted the company’s leadership in AI research and infrastructure, positioning Google for the next wave of AI innovation.

The decision to introduce a dividend payout marks a significant shift for Alphabet, which previously focused on share buybacks to return money to investors. This move follows a similar trend in the tech industry, with companies like Meta also increasing shareholder returns.

The financial success of Alphabet comes at a crucial time, as the company faces competition in the AI space from rivals like Microsoft. Despite setbacks in the past, Alphabet’s focus on AI research and development is paying off, with the company’s Cloud business revenue rising by 28% in the first quarter.

Analysts and investors are optimistic about Alphabet’s future, especially with the company’s plans to showcase more AI innovations at its upcoming developer conference. With a strong financial performance and a clear focus on AI, Alphabet is poised for continued success in the tech industry.