Connect with us

Published

on

Alphabetannounced its first-ever dividend on Thursday and a $70 billion stock buyback, cheering investors who sent the stock surging nearly 16% after the bell.

The Google parent is returning capital while spending billions of dollars on data centers to catch up with rivals on generative artificial intelligence. The dividend will be 20 cents per share.

Just three months ago, Alphabet’s Big Tech rival, Meta Platforms, announced its own first-ever dividend, a move that lifted the social media company’s stock market value by $196 billion the following day. Amazon remains the lone holdout among Big Tech firms not offering a dividend.

Alphabet beat expectations for the quarter in sales, profit and advertising – metrics that are all closely watched.

“Alphabet’s announced dividend payouts and buybacks on top of the solid earnings beat are not only a breath of fresh air for the tech market as a whole, but also a very intelligent strategy for the search engine giant going into a tough time of the year,” said Thomas Monteiro, senior analyst at Investing.com.

Alphabet’s after-hours share surge of nearly 16% following the report increased its stock market value by about $300 billion to over $2 trillion.

In a call to discuss results, CEO Sundar Pichai touted Google’s AI offerings as a boon to its core search results. “We are encouraged that we are seeing an increase in search usage among people who are using the AI overviews,” he said.

Revenue was $80.54 billion for the quarter ended March 31, compared with estimates of $78.59 billion, according to LSEG data.

The search firm’s beat on first-quarter revenue was powered by rising demand for its cloud services on the back of increasing adoption of artificial intelligence and steady advertising spending.

Google reported advertising sales rose 13% in the quarter to $61.7 billion. That compares with the average estimate of $60.2 billion, according to LSEG data.

Alphabet is coming off a fourth quarter in which ad sales missed the mark, sending shares tumbling, amid rising competition from Amazon, Facebook and new entrants like TikTok. The latter faces an uncertain future after President Biden signed a bill that would ban the popular app if it is not sold within the next nine to 12 months.

Meanwhile, Google Cloud revenue grew 28% in the first quarter, boosted by a boom in generative AI tools that rely on cloud services to deliver the technology to customers.

Alphabet’s capital expenditures were $12 billion, a 91% rise from a year prior, a figure Gabelli Funds portfolio manager Hanna Howard called “higher than anticipated.”

Still, CFO Ruth Porat said on the call with analysts that she expects such expenditures to be at that level or higher throughout the remainder of the year, as the company spends to build artificial-intelligence offerings.

Despite the surge in capital expenditures, Porat said operating margin in 2024 would be higher than last year, without elaborating.

Google’s cloud services are attractive for venture capital-backed startups developing generative AI technologies due to their pricing and ease of integration with other tools, investors and experts have previously said.

Google has touted its AI-powered chatbot, Gemini, as a panacea for automation, from coding to document creation. The software was widely criticized, however, after it was found to generate historically inaccurate images, including of former US leaders and World War Two-era German soldiers.

Google has said it is aware of the issues and is working to address them.

Continue Reading

Sports

Bubbly flows as Cubs reach 1st playoffs since ’20

Published

on

By

Bubbly flows as Cubs reach 1st playoffs since '20

PITTSBURGH — The Chicago Cubs, who haven’t been to the postseason since the 2020 season, were in the mood to party Wednesday afternoon — and so they cut loose.

After clinching a National League playoff berth with an 8-4 victory against the Pittsburgh Pirates, Cubs players and coaches high-fived and hugged each other on the field before taking the celebration up a notch in the visitors’ clubhouse at PNC Park.

With tarps in place and most wearing protective eyewear, a jubilant bunch doused each other with champagne and beer while others puffed victory cigars. Some did both.

Everything was muted during the coronavirus pandemic when the Cubs last qualified. They held off after making it in 2018, hoping to win the NL Central, just to finish second to the Milwaukee Brewers.

“It’s a grind of a season. You celebrate the first goal you accomplished,” manager Craig Counsell said. “We’ve made it to our first goal and that’s exciting. For everybody that’s been a part of the grind the whole year, for everybody that’s worked so hard to put us in this position, it’s a fun thing to do.

“You don’t get to do this in regular jobs — get to celebrate and throw champagne on each other. You just don’t get to do it, right? So you take advantage of it, have fun with it, enjoy each other and celebrate each other.”

Ian Happ homered and drove in three runs as the Cubs won their fourth straight for their seventh victory in eight games.

The Cubs (88-64) seemed destined for the playoffs since going 18-9 in May. Still, this hasn’t been straightforward. They lead the NL wild-card standings and are 4 1/2 games back of the first-place Brewers in the Central, having surrendered the division lead on July 28 after sitting alone at the top through July 19.

“When you’re in it, you think it’s going to happen every year,” pitcher Matthew Boyd said. “The fact and the reality is this is really hard to do. … This means so much to all of us. We’re not done yet. That’s the most important thing. We still know where we want to go.”

Happ popped the cork — in the clubhouse and on the field. The Pittsburgh native has played nine years with the Cubs. He was a rookie in 2017, when Chicago won the NL Central just one year after ending a 107-year drought without winning the World Series.

Happ was there with Anthony Rizzo, Kyle Schwarber, Kris Bryant, Javier Baez and others. This time, it was Pete Crow-Armstrong by his side, pulled into a tight hug for a simple message.

“There was definitely a mention of, ‘This is not the last,'” Crow-Armstrong said. “I mean, Ian learned from some of the best. Ian is one of the best at passing that on. Ian has meant a lot to me, just as a person. I’ll follow his lead. … I’ve got full trust in Ian Happ as a leader.”

Crow-Armstrong was dynamic with 25 home runs and 71 RBIs through in 95 games through the All-Star Break. The 23-year-old has cooled considerably, having four homers and driving in 19 runs since, and is looking forward to starting fresh in the playoffs.

“I don’t know. I’ve never done this,” Crow-Armstrong said. “I’m just excited to keep doing what we’re doing, doing what we’ve done all year. I’ve never experienced October baseball. I’m just ready to go all in.”

It might be necessary.

Kyle Tucker, an All-Star right fielder, has been on the injured list since Sept. 9 with a left calf injury. He will visit with a physical therapy group in Florida used in his recovery from a right leg injury while with the Houston Astros last season.

Tucker is hitting .270 with 22 home runs, 73 RBIs and 25 stolen bases in his first season since being traded to the Cubs in December.

“We’re aligned with Kyle,” Counsell said. “This is the best way for him to make some improvements. Unfortunately, we’ve plateaued and we weren’t making progress. That’s frustrating for Kyle.”

For every mention of how great Wednesday’s celebratory moment was, there was one of how it’s not enough. The Cubs want more. Not just the division, but the World Series. Tucker would make that easier, but this wasn’t the day to worry.

“We got to go to the playoffs in 2020, but doing it near the end of a true 162 is totally different,” Nico Hoerner said. “Baseball is such a game of persistence and comradery. Getting to celebrate like this is a really special thing.

“It’s obviously not our ultimate goal, but it’s still a huge milestone along the way. It’s awesome to celebrate with this group.”

And with the Cubs reaching their first goal on the road, Counsell couldn’t help but think about their fans back in Chicago.

“You want the fans to be able to experience October baseball and be a part of that and take them on a journey with the team. That’s so much fun,” Counsell said. “Those are the people you think about when this stuff happens — everybody that puts in the work, everybody that shows up at 12 o’clock for a night game and all the fans that come every day to Wrigley.

“We want them to be able to enjoy the best of baseball, which is October.”

The Associated Press contributed to this report.

Continue Reading

Sports

Brewers’ Quintana on IL; Megill return in doubt

Published

on

By

Brewers' Quintana on IL; Megill return in doubt

MILWAUKEE — The Brewers have lost another pitcher to injury and are unsure when All-Star closer Trevor Megill can return from his with the playoffs approaching.

The latest blow came Wednesday when Jose Quintana landed on the 15-day injured list with a left calf strain. The veteran lefty was hurt in the fourth inning of Sunday’s 3-2 loss to the St. Louis Cardinals.

Quintana, who has been fighting for a spot in the postseason rotation, was injured as he hustled to cover first. He crossed the bag ahead of José Fermín to record the final out of the inning but appeared to be limping slightly as he made his way to the dugout. Quintana later left American Family Field in a walking boot while on his way to have an MRI.

The Brewers decided to place Quintana on the injured list after he tested the calf on Wednesday.

Right-handed reliever Nick Mears was reinstated from the 15-day injured list to replace Quintana.

Meanwhile, there’s continuing concern around Megill, who has been dealing with a right flexor strain and has been on the injured list since Aug. 27 with what was initially thought to be a mild injury.

Megill, who is 5-3 with a 2.54 ERA and 30 saves, was scheduled to play catch before Wednesday’s game against the Los Angeles Angels but his recent throwing sessions haven’t gone as well as hoped, manager Pat Murphy said.

“Nothing great. It was not revealing but he didn’t want to push it anymore,” Murphy said, noting that Megill’s expected return has been pushed back.

“We all want him to pitch before the postseason,” Murphy said.

When asked if that was unlikely, the Milwaukee skipper said he didn’t have a concrete answer.

“I’m hopeful,” Murphy said.

In further discussing Megill’s injury, Murphy said “it’s not checking out medically.”

“His health is paramount,” Murphy said. “He’s working through the process of trying to hurry up and that’s not always the best thing for a flexor strain. We’re disappointed in the situation.”

Murphy spoke cautiously about trying to have Megill push through the injury in the playoffs, should it come to that.

“It’s not recommended,” Murphy said. “It’s got to have some time to heal. Unfortunately, we don’t have that time.”

On a positive note for the Brewers, Robert Gasser, who has been rehabbing from Tommy John surgery performed in June 2024, pitched 2 2/3 scoreless innings for Triple-A Nashville on Wednesday.

“I think you’ll see him soon,” Murphy said, adding that Gasser could serve in a multi-inning role.

Right-hander Chad Patrick, called up from Nashville on Sept. 9, struck out the side in the eighth inning of Tuesday night’s game against the Angels.

“Chad Patrick through the ball good last night, that’s encouraging,” Murphy said. “Just trying to get a feel for what we might do over these last 11 days to make (the bullpen) serviceable on the back end.”

Continue Reading

Sports

Rays presidents will step down as part of sale

Published

on

By

Rays presidents will step down as part of sale

ST. PETERSBURG, Fla. — Tampa Bay Rays presidents Matt Silverman and Brian Auld will step down from their roles as part of the pending sale of the team to new owners.

The Rays said Wednesday that those moves are connected with the franchise’s sale that they said could close within the next two weeks, pending final approvals. The team said it would share information about the sale and new ownership group after the transaction is completed.

Owner Stu Sternberg, who has controlled the club since 2005, has been negotiating to sell the Rays to a group headed by Patrick Zalupski. Silverman and Auld have led the Rays’ operations both internally and externally in their presidential roles.

Silverman is wrapping up his 22nd season with the Rays and 17th as team president. He was first promoted to team president in October 2005 when he was 29 years old, and later served three seasons of president of baseball operations, from 2015-17, before returning to the role of team president.

Auld is in his 21st season with the franchise and 11th as team president. He will remain with the Rays as a senior adviser to ownership and the leadership team during the transition and beyond.

While Silverman will not have a formal role with the club after the sale is complete, he will represent Sternberg and his partners on an executive advisory board being established by the new ownership group.

“What makes me proudest is seeing how the Rays have become woven into the region’s identity, with a true generational fan base taking shape,” Silverman said. “Children who once came to games are now bringing their own families, and that sense of connection will continue to grow for decades to come. Under Stu’s leadership, we have fulfilled our mission to energize the community through the magic of Rays baseball.”

Continue Reading

Trending