It has been a whirlwind few weeks for Tesla, from denying reports about dropping plans for a new car to unveiling a surprising compromise on its autonomous vehicle goal. The stock market has been reacting to these developments, with sharp gains and losses.
On the other side of the globe, Hong Kong's stock market has seen a surge on hopes of regulatory changes. Meanwhile, the U.S. stock market took a breather after impressive gains, with various indices showing mixed performances.
As we look ahead, several large U.S. companies are set to release quarterly results, including Microsoft, Google, and more.
Alphabet’s stock surges on Triple Crown of first-ever cash dividend, $70 billion stock buyback, strong results.
Yes, Alphabet Inc., the parent company of Google, has seen a significant surge in its stock1. This surge is attributed to a ‘Triple Crown’ of strong financial results1:
First-ever Cash Dividend: Alphabet announced its first-ever cash dividend of 20 cents per share.
$70 Billion Stock Buyback: The board authorized the repurchase of up to $70 billion in shares.
Strong Results: Alphabet reported a significant increase in revenue and net income, surpassing analysts’ predictions.
In detail, Alphabet’s first-quarter sales mainly through advertising were $80.54 billion, up 15% from $69.8 billion a year ago1. Sales minus total acquisition costs (TAC) came in at $67.59 billion, compared with $58.07 billion a year ago1. Alphabet reported first-quarter net income of $23.66 billion, or $1.89 a share, compared with net income of $15.05 billion, or $1.17 a share, in the year-ago quarter.
The strong performance from Search, YouTube, and Cloud contributed to these results. Google’s total advertising sales were $61.66 billion, compared with $54.55 billion a year ago. YouTube ad sales rose 21% to $8.1 billion from $6.7 billion a year ago. Google Cloud rang up $9.6 billion in sales, up from $7.5 billion.
These positive financial results led to a 12% increase in Alphabet’s stock in after-hours trading. This surge is on pace for its biggest one-day spike since 2015. Alphabet’s market cap has increased to $2.19 trillion.
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