A historic milestone. The Board of Directors of Alphabet, Google’s parent company, has announced starting a cash dividend program, marking the first time the company has distributed dividends. The news has sparked a positive reaction in the market, with the company’s shares seeing a increase of more than 11% in operations after market closure.
The first dividend declared is $0.20 per share, which is expected to be paid on June 17 to registered holders of class A, B and C shares. This step is part of a broader strategy that includes the authorization of a buyback of shares worth up to $70 billion.
57% more profit
This announcement was made along with the presentation of the financial results for the first quarter of 2024, in which Alphabet reported a 15% increase in revenue, reaching $80,539 million. Net profit shot up 57%, reaching $23,662 millionexceeding market expectations.
Google’s outstanding performance in key areas such as search, YouTube and cloud services has been a crucial factor in these positive results. In particular, advertising revenue grew 13% to $61.659 billion, with search and YouTube being big contributors.
Besides, Google Cloud increased its revenue by 28%, reaching $9,574 millionin an effort to more closely compete with Amazon and Microsoft in the cloud computing space.
Amid this financial and strategic expansion, Alphabet has carried out a significant restructuring of its cost base, including a reduction in its workforce by nearly 10,000 employees in one year, which was reflected in a notable improvement in operating margin. .
Sundar Pichai, CEO of Alphabet, expressed his enthusiasm for the company’s performance, highlighting the momentum gained across all segments and Alphabet’s strong position to lead the next wave of innovations in artificial intelligence.
“Our first quarter results show strong performance in Search, YouTube and Cloud,” CEO Sundar Pichai announced in a statement. “We are making good progress in our Gemini era and there is strong momentum across the company. Our leadership in AI research and infrastructure, along with our global product presence, position us favorably for the next wave of innovation in AI,” he added.
This content has been prepared under editorial criteria and does not constitute a recommendation or investment proposal. Investment contains risks. Past returns are no guarantee of future returns.
 will distribute dividends for the first time and rises more than 11% in the stock market){kind=link}