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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.

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Politics

Labour’s polling collapse is historic – but Nigel Farage has overseen a bigger one

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Labour's polling collapse is historic - but Nigel Farage has overseen a bigger one

Labour are on track for their worst end to the year in opinion polls since the Second World War.

Sir Keir Starmer‘s party is now averaging just 26.6%, despite winning one of the largest-ever majorities five months ago.

Analysis of nearly 1,000 polls across 75 years found Labour are now 1% behind their previous end-of-year low in 2016, when Jeremy Corbyn‘s tenure was dogged by an antisemitism row and leadership challenges.

The only other years to rival their current low were 1981, when the new SDP-Liberal Alliance upended politics, and after a decade of power in 2009, when the party was reeling from the recession and expenses scandal.

Labour are still leading the polls, but are now just 0.5% ahead of the Conservatives – well down on their 19% lead in January.

Kemi Badenoch‘s party has been practically stagnant for some time. It now sits on 26.1%, barely 2% above when Liz Truss resigned.

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Reform UK is several points behind on 21%, with the Liberal Democrats on 11.8% and the Greens on 7.7%.

The analysis for Sky News’ Sunday Morning With Trevor Phillips calculated averages using the first and last 10 polls of each year (or first and last five before 1997, when polls were less frequent).

Graphic for article on Labour’s polling collapse for Sunday Morning with Trevor Phillips

The Labour Party’s current standing is a far cry from the 44% share it enjoyed in January.

Its 17.6% fall since then is the biggest calendar-year collapse in support ever recorded in UK-wide polls.

Only twice has a bigger drop happened more suddenly.

The first was Nigel Farage‘s start-up Brexit Party in 2019, which surged to first place in the European Parliament elections after weeks of Commons deadlock over negotiations.

Within six months, its support was largely absorbed by Boris Johnson‘s Conservatives.

Bigger still was the Liberal Democrat collapse of 2010 – its “Cleggmania” wave during the May election campaign evaporated weeks after becoming the unpopular coalition government’s junior partner.

Graphic for article on Labour’s polling collapse for Sunday Morning with Trevor Phillips

But history suggests all is not yet lost for Labour.

When they ended the year below 30% in 2009 and 2016, they rebounded more than 10% the following year.

And Margaret Thatcher recovered from a similar low of 27% in 1981 to win a 144-seat majority – though she was buoyed by the Falklands War.

Graphic for article on Labour’s polling collapse for Sunday Morning with Trevor Phillips

The year’s biggest winner by far is Reform UK.

Our analysis shows its more-than-doubling is the fourth-biggest jump seen in a calendar year in peacetime.

But with a general election still four years away, its challenge is holding on to that momentum.

No third party experiencing such a surge since the war has maintained its support beyond two years.

On the final Sunday Morning With Trevor Phillips of 2024, Trevor will be joined by Leader of the House of Commons Lucy Powell and shadow housing secretary Kevin Hollinrake.

Watch it live on Sky News from 8.30am, and follow along live on the Politics Hub.

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UK

Oleksandr Usyk beats Tyson Fury to retain heavyweight titles

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Oleksandr Usyk beats Tyson Fury to retain heavyweight titles

Tyson Fury has responded after his defeat to Oleksandr Usyk in their heavyweight world title rematch in Saudi Arabia.

British fighter Fury, 36, had hoped to take revenge after his previous defeat to Usyk in May.

The Ukrainian, 37, who had entered the bout as a narrow favourite, retained his WBO, WBC and WBA heavyweight titles with his win at Riyadh’s Kingdom Arena.

But, the fight went to the scorecards with all three judges scoring the fight 116-112 in Usyk’s favour.

“I swear to God, I thought I won it by at least three rounds,” Fury said shortly after the fight.

“I felt a little Christmas spirit in there and I think he got a little Christmas gift from them judges. An early Christmas gift.

“I was confident I had won that fight again. I thought I’d won both fights but then again I’ve gone home with two losses on my record. I will always believe until the day I die that I won that fight.

“I’m not going to cry over spilt milk. It’s happened now.”

Fury left the ring without doing an interview, leaving his promoter Frank Warren to speak on his behalf.

“How can Tyson only get four rounds in this fight? It’s impossible,” Warren told TV network DAZN, adding he thought Fury had won.

“Only four rounds. Each of them gave him four rounds, four different rounds. I’m not saying this because I’m biased, but everyone along the front there all thought it went the same way.

“It’s nuts. It’s nuts, I don’t get it. I’m really disappointed with that. I thought he was in control of the fight and boxed extremely well. Usyk was on the back foot for most of the fight, but it is what it is.”

Tyson Fury reacts during a press conference after losing his latest boxing match. Pic: Action Images via Reuters/Andrew Couldridge
Image:
Fury reacts during a press conference after losing his latest boxing match. Pic: Action Images via Reuters/Andrew Couldridge

Usyk became the only man to inflict a professional defeat on Fury when he beat him on points in May, becoming the first boxer to hold all four major heavyweight belts at the same time and the first undisputed champion in 24 years.

But his reign over the four belts ended just a month later when he gave up his IBF belt to fight Fury in a rematch because he was unable to make a mandatory defence against the organisation’s interim belt-holder, Daniel Dubois.

“I win,” Usyk said simply after the fight, “it’s good”.

Oleksandr Usyk celebrates winning his bout. Pic: Action Images via Reuters/Andrew Couldridge
Image:
Usyk celebrates winning his bout. Pic: Action Images via Reuters/Andrew Couldridge

He also paid tribute to Fury.

“He’s a great fighter, a great opponent and it was a great 24 rounds. Unbelievable 24 rounds in my career. Thank you so much,” Usyk said.

Daniel Dubois, the IBF heavyweight title holder, was quick to call for a fight with Usyk following the result.

“I want my revenge,” he told Usyk directly. “Let’s go.”

Oleksandr Usyk and Tyson Fury stare at each other for 11 minutes
Image:
Usyk and Fury stared at each other for 11 minutes ahead of the fight

Dubois, 27, defended the IBF belt with a fifth-round knockout of fellow British rival 34-year-old Anthony Joshua in October.

He faces Joseph Parker on 22 February and the Usyk win could set up a future fight to unify all of the titles.

Ahead of the bout, Usyk and Fury engaged in a stare-down for more than 11 minutes in a head-to-head press conference on Thursday.

Fury weighed in at a career-high 20 stones 1lbs, while Usyk weighed 16 stones 2lb, the heaviest he has recorded, although both men were fully clothed when they stepped on the scales.

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UK

Princess of Wales asked Lady Gabriella Windsor to help with Christmas carol service

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Princess of Wales asked Lady Gabriella Windsor to help with Christmas carol service

It’s been revealed that the Princess of Wales asked Lady Gabriella Windsor, whose husband died earlier this year, for her help to plan her annual carol service.

During the summer, Kate invited Lady Gabriella, the daughter of Prince and Princess Michael of Kent, to join her team organising her annual Together at Christmas event at Westminster Abbey.

The heart-warming gesture was very much in tune with the overall theme of the service, recognising those who have shown love, kindness and empathy to others in their communities.

Speaking of Lady Gabriella’s reaction, a friend said she felt “honoured” and “very touched and grateful to the princess to be asked to contribute to her very special concert”.

The Princess of Wales arrives for the Together At Christmas carol service at Westminster Abbey in London. Picture date: Friday December 6, 2024.
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The Princess of Wales arriving for the carol service earlier this month. Pic: PA

Kate is understood to have been incredibly grateful for her contribution.

Lady Gabriella’s husband, financier Thomas Kingston, died on 25 February from a head injury and a gun was found near his body at his parents’ home in the Cotswolds.

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Kate Middleton hosts Christmas carol service

In October a coroner concluded he took his own life and during the inquest his widow warned about the effects of drugs used to treat mental health problems after the hearing was told Mr Kingston was prescribed drugs following complaints of trouble sleeping following stress at work.

Lady Gabriella, also known as Ella to her friends, supported Kate and played an advisory role with the organising team around the music performances that featured during the service.

The carol service took place on 6 December, with Kate joined by Prince William and their three children Prince George, Princess Charlotte, and Prince Louis, who all held candles during the service, as did the other guests in the congregation.

The service, shown on television on Christmas Eve, will start with a recorded voiceover from the Princess, featuring extracts from a letter given out alongside this year’s order of service.

She will say: “The Christmas story encourages us to consider the experiences and feelings of others.

“It also reflects our own vulnerabilities and reminds us of the importance of giving and receiving empathy, as well as just how much we need each other in spite of our differences.

“Above all else, it encourages us to turn to love, not fear. The love that we show ourselves and the love we show others.

“Love that listens with empathy, love that is kind and understanding, love that is forgiving, and love that brings joy and hope.”

Read more:
William and Kate to launch mental health programme

Prince William praises ‘amazing’ Kate

Olympic cycling champion Sir Chris Hoy, who is terminally ill with prostate cancer, lit a candle, as did Lindsey Burrow, the wife of former rugby league star Rob Burrow who died in June following a much-publicised battle with motor neurone disease.

Readings were given by Prince William and actors Richard E Grant, Michelle Dockery, Sophie Okonedo, and Olympic swimming gold medallist Adam Peaty.

The service will be broadcast as part of the programme Royal Carols: Together At Christmas, screened on ITV1 and ITVX on Christmas Eve, and will also feature three films about people and organisations who have inspired, counselled and comforted others in their times of need.

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