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Alphabet hails ‘once-in-a-generation’ AI opportunity as revenue rises

Apr 26, 2024 - theguardian.com
Alphabet, the parent company of Google and YouTube, saw a surge in shares following its first-ever dividend issuance and a reported increase in profits for the last quarter. The company's Q1 2024 revenue was $80.5bn, a 15% increase from the previous year, and earnings per share were $1.89, up from $1.17. The company also announced a $70bn stock buyback and a quarterly dividend of $0.20 per share. The strong performance was attributed to Search, YouTube, and Cloud, with Google Cloud's operating income quadrupling to $900m.

However, the company has faced several challenges, including protests over its contract with the Israeli government, an antitrust decision over its business practices, and a botched rollout of its new Gemini AI tools. Despite these issues, Alphabet's stock has continued to rise, reaching all-time highs this year. The company is also awaiting judgment in a landmark antitrust trial, accused by the Department of Justice of illegally monopolizing internet search and the digital ad market. Google is also facing a $2.3bn lawsuit from European media companies over its digital advertising practices and a $2.7bn antitrust fine from the European Commission.

Key takeaways:

  • Alphabet, the parent company of Google and YouTube, reported a surge in profits for the last quarter of 2024, with a 15% increase in revenue compared to the same period last year. The company also issued its first ever dividend and announced a $70bn stock buyback.
  • Google's CEO, Sundar Pichai, highlighted the importance of artificial intelligence in the company's future, with ongoing efforts to integrate the technology across its business. The company's strong performance was attributed to Search, YouTube, and Cloud services.
  • Despite recent internal and external turmoil, including protests over Google Cloud's contract with the Israeli government and an antitrust decision over its business practices, Alphabet's stock has continued to rise, reaching all-time highs.
  • Google is facing several legal challenges, including a landmark antitrust trial in which it is accused of illegally monopolizing internet search and the digital ad market, and a $2.3bn lawsuit from European media companies over its digital advertising practices.
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