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

Entertainment

Dame Joanna Lumley warns of ‘crisis hidden in plain sight’ – with 1.5 million older people set to spend Christmas alone

Published

on

By

Dame Joanna Lumley has warned of a “crisis hidden in plain sight”, with 1.5 million older people set to spend Christmas alone.

Age UK spoke to more than 2,600 people and found 11% will eat dinner alone on 25 December, while 5% will not see or speak to anyone the whole day.

Applied to the overall population, the findings suggest 1.5 million people will eat alone at Christmas, according to the charity.

Dame Joanna said the “silence can be deafening” for those left isolated and called it “a crisis hidden in plain sight”.

The actor and campaigner is now joining other luminaries including Dame Judi Dench, Brian Cox and Miriam Margolyes to back Age UK’s campaign against loneliness.

The charity says its volunteers made more than 70,000 minutes’ worth of calls to people during Christmas week last year and is urging people to donate.

‘A tragedy we don’t talk about enough’

Age UK said it also supports coffee mornings and festive lunches to give lonely people the chance to enjoy in-person interaction.

Dame Judi said: “For so many older people, Christmas can be a time of silence – days without conversation or company.”

Succession star Brian Cox called the issue “a tragedy we don’t talk about enough”.

He said: “Far too many older people are left spending the season in silence, when it should be a time of warmth, connection and joy.”

Brian Cox is another of the campaign's high-profile backers. Pic: PA
Image:
Brian Cox is another of the campaign’s high-profile backers. Pic: PA

Margolyes, of Harry Potter fame, added: “Growing older shouldn’t mean disappearing into the background, we need to be seen, heard and celebrated.

“That’s what Age UK is striving for – they’re changing how we perceive age.”

Read more:
What counts as a white Christmas?
CCTV shows festive thief

The charity’s chief executive, Paul Farmer, said: “Your donation could bring comfort, friendship, and care to an older person facing loneliness this winter.

“From friendly, weekly calls to local lunch clubs, we’re here to make sure no one spends winter alone. But we can’t do it without you.”

Continue Reading

Politics

Japan government backs 20% tax on crypto profits, on par with stocks 

Published

on

By

Japan government backs 20% tax on crypto profits, on par with stocks 

The Japanese government is reportedly backing plans to introduce a significant reduction in the nation’s maximum tax rate on crypto profits, with a flat rate of 20% across the board.  

Japan’s financial regulator, the Financial Services Agency (FSA), first floated the proposed tax changes in mid-November, outlining plans to introduce a bill in early 2026, and now the government and ruling coalition — the political parties in control of Japan’s parliament, the National Diet — are on board.   

According to a report from Japanese news outlet Nikkei Asia on Sunday, the new rules aim to align crypto taxation rules with those of other financial products, such as equities and investment funds. 

Under the current laws, taxation on crypto trading is included as part of income taxes for individuals and businesses, falling under the category of “miscellaneous income.” The rate ranges from 5% on the lower end of the spectrum to 45% on the high end, with high-income earners potentially on the hook for an additional 10% inhabitant tax.

Meanwhile, assets such as equities and investment trusts are taxed separately, with a flat 20% tax on profits, regardless of the amount. 

The tax changes could be a boon for the domestic cryptocurrency market, as the higher tax rates may have deterred potential investors.

Source: Sota Watanabe

According to the Nikkei report, the potential changes to crypto taxation in Japan will be introduced as part of a “solid investor-protection framework” proposed in the FSA’s bill, which aims to amend the Financial Instruments and Exchange Act.