Alphabet CEO Sundar Pichai.
Christoph Soeder/picture alliance via Getty Images
Alphabet joins its tech competitors like Microsoft, Apple and Meta in the dividend club.
The 19 cent dividend is the first ever, and the company has also approved an additional 65 billion euros for buybacks.
The news could reassure some tech investors who are worried by the Results from Meta were unsettled on Wednesday.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Alphabet becomes part of the dividend club.
In the quarterly report on Thursday, Google’s parent company announced that it would pay a dividend of 0.19 euros per share for the first time.
It will be paid out on June 17th to shareholders of record on June 10th. Alphabet plans to pay quarterly dividends in the future, is it[called in the Earnings Announcement. The company also approved additional share buybacks worth 65 billion euros.
The company’s earnings also contributed to the stock’s rise. The company reported total sales of around 70 billion euros for the first quarter, exceeding estimates. This corresponds to an increase of around 15 percent compared to the previous year.
After the numbers were announced, Alphabet shares rose around 13 percent in after-hours trading.
The company joins other technology companies such as Microsoft, Apple and Meta that also pay dividends. Meta quit also for the first time in February a dividend of 0.47 euros per share an and increased its own share buybacks by 47 billion euros.
Alphabet’s announcement – and that of Microsoft, which also beat estimates – could be the one of Meta’s earnings announcement Reassuring frightened tech investors earlier this week.
Despite the jump in earnings, shares of Meta fell 11 percent on Thursday. The company had given weak sales guidance for the second quarter.
The results report showed that Meta this year due to AI investments as well as higher infrastructure and legal costs will spend more than expected. On the conference call on Wednesday Meta CEO Mark Zuckerberg warned investorsthat it could take a while for the company’s AI investments to pay off.
Meanwhile, Alphabet CEO Sundar Pichai said in its earnings call that “our leadership in AI research and infrastructure, as well as our global product footprint, position us well for the next wave of AI innovation.”
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