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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

British Steel: Raw materials for Scunthorpe plant ‘paid for’ amid race against time to avert shutdown

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British Steel: Raw materials for Scunthorpe plant 'paid for' amid race against time to avert shutdown

The raw materials needed to keep British Steel’s Scunthorpe plant operating have been paid for, Deputy Prime Minister Angela Rayner has said – but she would not be drawn on when they would arrive.

Officials have been racing to obtain enough iron and coal to keep the furnaces at the UK’s last virgin steel-producing plant going – because if they cool down too much, the molten iron solidifies and blocks the furnaces.

It comes after ministers rushed through an emergency bill on Saturday to take over the facility after talks with Chinese owners Jingye broke down.

Politics latest: Chinese embassy urges UK to act with ‘fairness’ on British Steel

Business Secretary Jonathan Reynolds said the government had been prompted into action after learning that the firm had stopped ordering new raw materials to keep the plant running and planned on selling off supplies it already had.

Speaking to reporters from the site in Scunthorpe on Monday afternoon, Ms Rayner said: “We’ve got the raw materials, they’ve been paid for, and we’re confident that the furnaces will continue to fire.”

Asked whether the materials would be arriving on Monday, the deputy PM only said: “As I say, we’ve got the raw materials, and everything’s in place, and we’re confident that the furnaces will continue.”

Deputy Prime Minister Angela Rayner views blast furnaces during her visit to the British Steel site in Scunthorpe. Pic: PA
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Angela Rayner views blast furnaces during her visit to the British Steel site in Scunthorpe. Pic: PA

Earlier, Exchequer Secretary to the Treasury James Murray told Sky News the raw materials were “in the UK” and “nearby” the Lincolnshire site.

He said there were “limits to what I can say” because there were “commercial operations going on here”.

The prime minister’s official spokesman said there were two ships carrying materials docked at Immingham port in North Lincolnshire, with “a third ship which is currently en route off the coast of Africa, which will be making its way to the UK”.

Ministers have faced questions over why they are only just acting now, given unions warned earlier this month that Jingye decided to cancel future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.

Parliament was recalled on Saturday so that emergency legislation could be passed bringing the steelworks into effective government control and officials were on site as soon as the new legislation came into force.

Read more:
What next for British Steel?
How Trump, China and Reform played their part as government steps in

Ms Rayner would not be drawn on the long-term plan, nor whether other buyers were interested or whether it would come down to nationalisation.

She said: “We’ve taken nothing off the table. We’d like to see private investment going forward… we’re confident of the future of British Steel.”

‘No evidence of sabotage’

Ms Rayner said the government “hasn’t seen any evidence” of sabotage, when asked about suggestions that Jingye might have purposefully attempted to shut the blast furnaces down.

The Chinese company stepped in with a deal to buy British Steel’s Scunthorpe plant out of insolvency five years ago.

Mr Reynolds told MPs on Saturday that the intention of Jingye… “was to cancel and refuse to pay for existing orders” which would have “irrevocably and unilaterally closed down primary steelmaking at British Steel”.

Appearing on Sky News’ Sunday Morning With Trevor Phillips, the business secretary said he would not bring a Chinese company into the “sensitive” steel sector again.

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British Steel: What happens next?

Commenting on the situation for the first time on Monday, a Chinese embassy spokesperson urged the British government to act with “fairness, impartiality and non-discrimination… to make sure the legitimate rights and interests of the Chinese company be protected”.

“It is an objective fact that British steel companies have generally encountered difficulties in recent years,” it added.

Companies including Tata – which ran the now-closed Port Talbot steelworks – and Rainham Steel have offered managerial support and materials to keep the Lincolnshire site running.

Union officials have said they are “hopeful” that the materials required at the North Lincolnshire works will arrive within the next 48 hours.

However Andy Prendergast, national secretary at the GMB, said there still needs to be “a deal to be done for the future” and their preference is “nationalisation of what is a key national asset”.

The Conservatives accused the government of acting “too late” and implementing a “botched nationalisation” after ignoring warnings about the risk to the steelworks.

Shadow business secretary Andrew Griffith said: “The Labour government have landed themselves in a steel crisis entirely of their own making.

“They’ve made poor decisions and let the unions dictate their actions.”

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World

Why Vladimir Putin seems to be raising the stakes

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Why Vladimir Putin seems to be raising the stakes

He may not be the one to sit down with Vladimir Putin, but Keith Kellogg, President Trump’s special envoy for Ukraine, summed up the horror of Sunday’s ballistic missile strikes on Sumy succinctly.

“Today’s Palm Sunday attack by Russian forces on civilian targets in Sumy crosses any line of decency,” he said.

“As a former military leader, I understand targeting and this is wrong.”

Ukraine war latest: At least 34 people killed

Vladimir Putin gave up on decency long before he started this war.

What he seems to be risking by attacks of this scale is Donald Trump‘s patience.

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Russia launches strike on Ukraine

He does not seem to mind if strikes like this make a mockery of US attempts to bring the two warring parties to the table.

He does not seem to care if he alienates his US counterpart, who has been strangely predisposed to fawn over him to date.

Perhaps he is raising the stakes as high as he can to illustrate his strength of hand: Strikes on civilians damage Ukrainian morale – even if they are hardly battlefield wins – and on the battlefield, he is pushing ahead and does not want to stop.

Pic: Reuters
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At least 34 people, including two children, were killed in Sumy on Sunday. Pic: Reuters

Perhaps he knows that if he keeps up his military momentum, President Trump will tire of a conflict he realises he cannot solve and let the matter slip while staying true to his MAGA-economic priorities by letting funds for Ukraine dry up.

Perhaps he thinks President Trump is so keen on a rapprochement with Russia, on the big Putin-Trump bilateral, that the details, the civilian deaths along the way, will all be by-the-by when that long-sought photo-op finally happens.

Whatever it is, President Putin seems to be in no rush to get things settled.

His spokesman told a Russian state reporter on Sunday that talks were under way at several levels but that “of course, it is impossible to expect any instant results”.

Withdrawing his troops would get instant results. But that is not what Vladimir Putin wants.

Read more:
The art of doing a deal with Trump
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His war economy is working for him, and he has the attention of the one country he considers a worthy adversary, the United States.

In the meantime, this attack reinforces why President Zelenskyy’s plea for air defence systems is his top priority. And why a ceasefire cannot come soon enough.

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US

Katy Perry becomes first artist to sing in space in landmark all-female mission

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Katy Perry becomes first artist to sing in space in landmark all-female mission

Katy Perry has blasted off to space along with five other women in the first all-female space crew in over sixty years. 

The Firework singer lifted off from West Texas on a Blue Origin rocket before becoming the first artist to sing in space.

Flying alongside Perry were author Lauren Sanchez, the fiancee of Blue Origin owner and Amazon founder Jeff Bezos, journalist and TV presenter Gayle King, civil rights activist Amanda Nguyen, former rocket scientist Aisha Bowe, and filmmaker Kerianne Flynn.

Pic: Blue Origin
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Katy Perry rings a symbolic bell before boarding the New Shepard rocket. Pic: Blue Origin

This image provided by Blue Origin shows, first row, seated, from left: Lauren Sanchez and Kerianne Flynn and standing in back from left: Amanda Nguyen, Katy Perry, Gayle King and Aisha Bowe in West Texas. (Blue Origin via AP)
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(Seated left to right) Lauren Sanchez and Kerianne Flynn, (standing left to right) Amanda Nguyen, Katy Perry, Gayle King and Aisha Bowe. Pic: Blue Origin

The star-studded crew were supported on the ground by family and friends including Kris Jenner, Khloe Kardashian and Oprah Winfrey, who said she had “never been more proud” of her friend, King.

“There’s only one time all the women are going up for the first time,” Oprah said she told her friend when urging her to go on the flight, telling her she’d regret turning down the opportunity.

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Kardashians share support for all-female crew

Weightlessness

The crew were weightless for just four minutes after passing the Karman line, a 62-mile-high boundary that is internationally recognised as the boundary of space.

Pic: Blue Origin
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Pic: Blue Origin

They could be heard screaming as they began to feel weightless, and told each other to look at the incredible views of the moon.

As the crew were leaving space, Perry started to sing What a Wonderful World by Louis Armstrong.

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‘I feel super-connected to love’

Asked why she chose that song, she said: “It’s not about me or about me singing my songs, it was about a collective energy in there.

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“It’s about this wonderful world that we see right out there and appreciating it.”

She confirmed she will be writing a song about the experience.

Pic: Blue Origin
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Katy Perry kisses the ground after the flight. Pic: Blue Origin

The descent

Three parachutes on their capsule opened up to bring them safely back down to Earth and just before they landed, an air cushion blew a cloud of dust up in the west Texas desert, giving a dramatic-looking touchdown.

Pic: Blue Origin
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Pic: Blue Origin

Pic: Blue Origin
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Pic: Blue Origin

“Excited as I am, I’ll be very glad when we come back down,” said self-confessed nervous flier King before liftoff.

When she exited the shuttle, the presenter kissed the floor and said: “Thank you, Jesus”.

She said it was “oddly quiet” in space, and it reminded her that people needed to “do better and be better” on Earth.

“It was the most incredible experience of my life to be up there and see such vast darkness in space and look down on our planet,” said Flynn, through tears.

“The moon was so beautiful and I feel like that was a special gift just for me,” she said.

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