Google’s parent company saw a positive response from investors on Thursday with the announcement of its first dividend ever, pushing its market value to $2 trillion (£1.6 trillion).
Alphabet’s stock rose by 10% in early trading on Friday, reaching a market capitalization of over $2 trillion. Although Alphabet had previously reached this level in 2021, it had not closed above that threshold by the end of the day.
Alphabet’s shares increased after reporting earnings that exceeded analysts’ expectations. Microsoft also had a strong performance on Thursday, surpassing the $3 trillion mark thanks to investments in artificial intelligence.
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Alphabet’s quarterly results included better-than-expected performance from its Google search and YouTube platforms, along with strong numbers from its cloud business driven by AI models. The company also declared its inaugural dividend.
Investment director at AJ Bell, Russ Mold, commented on Alphabet becoming a high-dividend tech company as a reflection of the current environment where tech giants are experiencing substantial growth and strong cash flows.
Alphabet now joins a select group of U.S.-listed companies with a market value exceeding $2 trillion, including Microsoft at over $3 trillion, Apple at $2.6 trillion, and Nvidia at slightly above $2 trillion. Apple had also crossed the $3 trillion mark in the previous year.
Source: www.theguardian.com
