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.
The Washington Capitals have officially punched their ticket to the postseason dance already, and the Winnipeg Jets are well on their way to doing so as well (a win over the Buffalo Sabres on Sunday would have done it, but that was not in the cards apparently).
Those two teams meet on Tuesday night (8 p.m. ET, ESPN+), and could meet again if they make the Stanley Cup Final. As of now, each is poised to face the second wild-card team in their respective conference — might they prefer one of the bubble teams over the others?
In Winnipeg’s case, the team currently in the second wild-card spot is the St. Louis Blues. The Jets have gone 2-1 against the Blues this season, with one of the wins coming via shootout, and they’ll face off again on Apr. 7. If the Calgary Flames slide into that spot for an old-school Smythe Division showdown, the Jets also went 2-1 against them this season (though the last game was back on Jan. 26).
The Utah Hockey Club could make a push into that spot, and — you guessed it — the Jets have gone 2-1 against the NHL’s newest team. The final team with a legit shot at the West’s last spot is the Vancouver Canucks, against whom the Jets have gone 1-1, with their final matchup this Saturday.
The Caps’ first-round opponent at the moment is the Montreal Canadiens; Washington won two of three against Montreal, with the loss coming in OT. If the New York Rangers slide in as the opponent, the Caps will hope to avenge their sweep in last year’s playoffs, and appear likely to do so based on regular-season results; they won each of the three matchups against the Blueshirts. Washington won its only matchup against the New York Islanders this season, with two games remaining.
The Capitals have also had success against the Columbus Blue Jackets (two wins in two games thus far, with two remaining in April) and Detroit Red Wings (two wins this month after a loss on Dec. 29).
So although the path will get more difficult as the playoff tournament wears on, it appears that both the Caps and Jets are in good shape — on paper, at least — heading into the opening round.
There is less than a month left until April 17, the final day of the regular season, and we’ll help you track it all with the NHL playoff watch. As we traverse the final stretch, we’ll provide details on all the playoff races, along with the teams jockeying for position in the 2025 NHL draft lottery.
Points: 47 Regulation wins: 14 Playoff position: N/A Games left: 12 Points pace: 55.1 Next game: vs. TOR (Thursday) Playoff chances: 0% Tragic number: E
Note: An “x” means that the team has clinched a playoff berth. An “e” means that the team has been eliminated from playoff contention.
Race for the No. 1 pick
The NHL uses a draft lottery to determine the order of the first round, so the team that finishes in last place is not guaranteed the No. 1 selection. As of 2021, a team can move up a maximum of 10 spots if it wins the lottery, so only 11 teams are eligible for the No. 1 pick. Full details on the process are here. Matthew Schaefer, a defenseman for the OHL’s Erie Otters, is No. 1 on the draft board.
NEW YORK — With the clock winding down in regulation in a tie game, the Islanders appeared to get the go-ahead goal against the Columbus Blue Jackets. However, it was immediately waved off by officials, and New York ended up losing 4-3 in a shootout.
Islanders forward Kyle Palmieri redirected a shot from Alexander Romanov past Blue Jackets goalie Elvis Merzlikins with about 9 seconds remaining. After officials waved it off for goaltender interference, the situation room in Toronto reviewed the play and confirmed the no-goal call on the ice.
“If Toronto is afraid to overturn calls made by their referee, we don’t need Toronto,” Islanders coach Patrick Roy said. “That’s all I want to say.”
Shortly before the deflection, Palmieri skated in front of the crease and Merzlikins came forward and bumped into him.
According to the league’s explanation, “Palmieri impaired Merzlikins’ ability to play his position in the crease prior to the goal.”
Palmieri didn’t like the call.
“He said there was contact initiated in the crease,” Palmieri said of a conversation with the referee. “And I guess the goalie needs five minutes to get reset and ready for the shot, and it looked like he couldn’t wait to wave it off.”
With one point earned for the shootout loss, the Islanders pulled into a tie with the New York Rangers and one point behind Montreal for the second wild card in the Eastern Conference. Columbus is another point back.
SALT LAKE CITY — Detroit goaltender Petr Mrazek exited with an apparent lower body injury early in the first period in the Red Wings’ 5-1 victory over Utah Hockey Club on Monday night.
Utah forward Dylan Guenther collided with Mrazek in the net on the tail end of a breakaway shot attempt 1:38 into the game. The contact sent Mrazek’s stick flying across the ice. Mrazek limped off the ice and headed straight to the locker room. Alex Lyon replaced him in the net.
Lyon finished with 16 saves against Utah. He came into Monday’s game with a 11-8-1 record as a starter this season, allowing 2.77 goals per game and boasting a .900 save percentage.
“I’m just staying ready every day,” Lyon said. “When you stay ready, you don’t have to get ready.”
Red Wings coach Todd McLellan said Mrazek will not be available to play on Tuesday night when Detroit wraps up a four-game road trip at Colorado and will be further evaluated on Wednesday when the team returns to Detroit.
Mrazek is 12-21-2 in his 35 previous starts this season. He has a 3.35 goals against average and a .891 save percentage.
McLellan praised Lyon’s ability to lock down the net after taking the ice on short notice.
“Alex did a real good job coming (into) a difficult situation a minute into the game when you certainly don’t expect it,” McLellan said. “The first shot goes by him and now it’s ‘Okay, what are we going to get?’ but he really settled in and had a good game.”