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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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Canes’ not-so-special teams glaring in Game 2 loss

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Canes' not-so-special teams glaring in Game 2 loss

Vincent Trocheck‘s double-overtime goal was the perfect encapsulation of the New York Rangers‘ series against the Hurricanes so far: It was scored on a Rangers power play during another failure for Carolina’s penalty kill.

“Not much else to talk about. It’s pretty evident,” Carolina captain Jordan Staal said after New York’s 4-3 victory to take a 2-0 series lead on Tuesday night. “The PK’s got to kill. If our power play converts on probably one [chance], we probably win. Everyone in the room knows our special teams need to be better.”

The Rangers went 2-for-7 on the power play in Game 2, after needing only 23 seconds to score twice on two opportunities in Game 1. For the playoffs, New York has 10 goals on 25 power-play opportunities (40%). Outside of the Edmonton Oilers, no one’s been hotter with the man advantage.

It’s not just how many power-play goals the Rangers score, but when they score them.

The Rangers tied the score at 3 on a power play, as Chris Kreider converted for his third goal of the playoffs at 6:07 of the third period with Dmitry Orlov in the penalty box for tripping.

Trocheck’s double-overtime winner was scored with Carolina defenseman Brady Skjei serving a penalty for cross-checking. Trocheck has scored in five straight games to join Cecil Dillon (5 GP in 1933) for the longest postseason goal streak in Rangers history.

That call on Skjei drew criticism on social media and during the broadcast for not being as emphatic as one might expect for a penalty whistled at 6:37 of the second overtime.

Staal was asked after the game if the Rangers were going down too easy on plays to draw penalties.

“Good question,” he said, before a lengthy pause to collect his thoughts. “It’s hard for the refs to know how hard guys hit other guys. It is what it is.”

Meanwhile, the Hurricanes have been completely blanked on the power play against the Rangers. They were 0-for-5 in Game 1 and in Game 2, as the Rangers penalty kill went 10-for-10 to open the series.

“We’ve got to definitely be sharper. We’ve got to get inside. We’re all on the outside. That’s not how we do it. We’ve got to get back to doing it the way we know how to,” coach Rod Brind’Amour said.

Goaltender Igor Shesterkin has been a factor on that perfect penalty kill, stopping all 10 power-play shots that he’s faced. That included two saves on Hurricanes star Sebastian Aho in overtime, sparking more chants of “I-GOR!” from Rangers fans.

“MSG was electric tonight. It’s an unbelievable feeling every time. [I was] almost crying,” Shesterkin said of the chants.

Rangers defenseman Jacob Trouba said: “That’s Igor … we don’t win that game without him.”

The Hurricanes had the best penalty kill (86.4%) and second-best power play (26.9%) in the regular season. In the first round against the Islanders, the Hurricanes went 5-for-15 with the man advantage — although they did allow three power-play goals on 11 opportunities.

But in this round, they’re getting dominated.

“That part of the game is going well right now,” Trouba said. “That can change. Obviously, we’d like it to stay this way, but you don’t want to win games strictly that way.”

Game 3 is Thursday night in Raleigh, North Carolina.

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Stormy Daniels describes awkward and unexpected ‘sexual encounter’ with Donald Trump

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Stormy Daniels describes awkward and unexpected 'sexual encounter' with Donald Trump

Porn star Stormy Daniels has described to jurors an awkward and unexpected sexual encounter she claims she had with Donald Trump in 2006.

Ms Daniels was testifying at the former president’s criminal trial over hush money she was paid to keep silent about the alleged encounter during the presidential race.

But it was not all bad news for Mr Trump. On the day the court heard from Ms Daniels, his trial in Florida on charges of illegally keeping classified documents at his Mar-a-Lago residence after leaving office, scheduled to start on 20 May, was postponed indefinitely by a federal judge.

Ms Daniels, 45, speaking at the “hush money” trial, said she tried not to think about having sex with him while it was allegedly taking place.

Trump trial as it happened: Raging ex-president calls for mistrial over ‘difficult to control’ witness Stormy Daniels

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Stormy Daniels recalls bedroom encounter with Trump

Mr Trump, 76, stared straight ahead when she entered the courtroom and occasionally shook his head and whispered to his lawyer.

After the lunch break, Mr Trump’s defence lawyers demanded a mistrial over what they said were prejudicial and irrelevant comments.

The judge rejected the defence’s request and said defence lawyers should have raised more objections during the testimony.

Later in the day, the Trump team used its opportunity to question Ms Daniels to paint her as motivated by personal hatred of the former president and hoping to profit off her claims against him.

“Am I correct that you hate President Trump?” defence lawyer Susan Necheles asked.

“Yes,” Ms Daniels acknowledged.

Donald Trump in court. Pic: Reuters
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Donald Trump in court. Pic: Reuters

Stormy Daniels in Manhattan in 2018. Pic: AP
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Stormy Daniels in Manhattan in 2018. Pic: AP

Hush money payment

In the final weeks of Mr Trump’s 2016 Republican presidential campaign, his then-lawyer and personal fixer Michael Cohen paid Ms Daniels $130,000 (£103,000) to keep quiet about what she described as an awkward and unexpected sexual encounter with Mr Trump at a celebrity golf outing in Lake Tahoe in July 2006.

Mr Cohen pleaded guilty to campaign finance violations in 2018 related to the payments and served more than a year in prison – with federal prosecutors saying he acted at Mr Trump’s direction.

Mr Trump, the Republican candidate for president again this year, has pleaded not guilty to charges of falsifying business records to cover up the payment and denies having sex with Ms Daniels.

Michael Cohen was Donald Trump's lawyer and fixer. Pic: AP
Image:
Trump’s ex-personal lawyer Michael Cohen served more than a year in prison. Pic: AP

Imbalance of power

Ms Daniels described how an initial meeting at the golf tournament, where they discussed the adult film industry, progressed to a “brief” sexual encounter she said Mr Trump initiated after inviting her to dinner and back to his hotel suite.

She said she did not feel physically or verbally threatened during the encounter, but she perceived an imbalance of power, with Mr Trump being “bigger and blocking the way”.

She said she found it “hard to get my shoes” after it ended “because my hands were shaking so hard”.

“He said, ‘Oh, it was great. Let’s get together again, honey bunch’,” Ms Daniels said. “I just wanted to leave.”

Read more:

This was Donald Trump with his trousers down – no doubt | James Matthews

Daniels expected to return to witness stand

Mr Trump has been charged with 34 felony counts of falsifying business records in connection with the hush money payments.

Speaking outside of court at the end of the day, Mr Trump said: “This was a very big day, a very revealing day. As you see their case is totally falling apart.”

Ms Daniels is expected to return to the witness stand when the trial resumes tomorrow.

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Trump trial: This was Donald with his trousers down – no doubt

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Trump trial: This was Donald with his trousers down - no doubt

There are moments, more than others, that scream the humiliation of it all.

Take this, before Tuesday’s proceedings got underway. “No descriptions of genitalia or anything but it’s important to elicit that she had sex with him.”

It was the prosecution’s assurance prior to questioning Stormy Daniels after Donald Trump’s lawyers had objected, in advance, to her testifying to the details of sexual acts.

It would be that kind of day in this kind of trial.

Trump trial as it happened: Stormy Daniels accused of car park ‘threat’ lie

In a dingy New York courtroom, this was the president and the porn star, together again, in a reunion most reductive for Mr Trump.

He might have secured guarantees on anatomical detail but, from the moment the court heard “The People call Stormy Daniels” this was Mr Trump with his trousers down, no doubt.

More on Donald Trump

Ms Daniels told her story, of growing up in Baton Rouge, Louisiana, the daughter of a single mother. She edited her high school newspaper, enjoyed ballet dancing and horses and had ambitions to be a technician.

By the time she met Mr Trump, aged 27, we learned she was an adult film actress and director, star of the likes of 40-Year-Old Virgin and Knocked Up.

By her telling, the Trump encounter was more Austin Powers – the penthouse suite, the satin pyjamas and the spanking with a rolled-up magazine.

“Bullshit,” Mr Trump was heard to mutter. His problem is that this kind of bullshit sticks.

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Stormy Daniels recalls bedroom encounter with Trump

Whatever his lawyers’ protestations about Ms Daniels’ credibility – and there are holes – that’s hardly the headline for a watching, voting, public.

What will they take from court to the polling booth in November? Quite apart from the imagery, what message does it send to key demographics?

An affair with a porn star, whilst married, is a poor fit with the principles of evangelicals, so critical to the Trump vote in 2016. Suburban women might also reel from this tawdry peek backstage at the presidency.

How much will Mr Trump worry? About $130,000 (£103,000) worth. It is the premium he paid to stop the story coming out in the first place.

Sadly, for him, the insurance policy has run out.

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