Alphabet's Revenue Up, Starts Dividend and Buyback

Alphabet, Google's parent company, has reported a significant increase in its first-quarter earnings and sales. The company's revenue rose 15% to $80.54 billion, up from $69.79 billion a year earlier. The earnings for Q1 were $1.89 per diluted share, a substantial increase from $1.17 a year earlier.

Alphabet announced its first-ever cash dividend. The board of directors approved a quarterly cash dividend of $0.20 per share, payable on June 17 to shareholders of record on June 10 on each class A, class B, and class C shares. This announcement led to a surge in Alphabet's shares in pre-market trading.

The company also initiated a $70 billion stock buyback program. The company authorized the buyback of up to an additional $70 billion of its class A and class C shares. This move, combined with the announcement of the dividend, led to a significant increase in Alphabet's stock market trading.

Alphabet's first-quarter results showed growth in various areas. Google Search and other advertising revenue rose by 14%, YouTube ads surged by 21%, and Google Cloud revenue increased by 28%. The company reported an operating margin of 32% for the quarter, with total costs and expenses widening to $55.07 billion.

Following these announcements and the strong financial performance, Alphabet's stock rose nearly 11%. The company also reclaimed its spot in the $2 trillion valuation club for the first time since November 2021.