Google made investors sweat. Alphabet will pay a dividend for the first time in its history and will buy back its own shares

ANDmerican technology company Alphabet, which owns the Internet search engine Google, increased its first-quarter interim profit by 57 percent to $23.66 billion (roughly K554 billion). In the fourth quarter of results, the company also announced that it will pay a dividend for the first time in its history. At first, the company’s shares reacted with a sharp increase.

Alphabet’s total revenue shrank by 15 percent year-on-year to $80.54 billion. The average analyst, according to LSEG, estimated them at 78.59 billion on average. Advertising revenue rose 13 percent to $61.66 billion.

Alphabet announced that it will pay a dividend of 20 cents per share. It also stated that its leadership approved a share buyback worth $70 billion (K1.6 trillion).

XTB analyst Tom Cverna said the company’s revenue beat expectations thanks to growth in key segments such as advertising and the cloud. “Investors can be satisfied not only with the results, but also with the announced share buyback program in the amount of more than 70 billion US dollars and the first ever dividend,” he added.

Google is the largest Internet search engine in the world and the number one in the world market for Internet advertising.

Microsoft sz on AI

American software company Microsoft increased its intercompany profit by a fifth to $21.9 billion (roughly K513 billion) in this financial quarter. She announced it in a press release. Its revenue rose 17 percent to $61.9 billion. This is how many analysts, who, according to a survey by the LSEG company, estimated them at an average of 60.8 billion dollars.

Artificial intelligence (AI) has always flowed into cloud services and software products for businesses, according to Reuters, adding to the growth of demand in this financial quarter, which ended on March 31. Analyst Jason Wong from the Gartner company said that Microsoft’s employees show great interest in proven generative AI, but not everyone has clear plans for its practical use. “It’s still in the very early stages,” he added.

Microsoft is now investing heavily in the development of its AI services. In this financial quarter, capital expenditures of the company increased to 14 billion dollars from 11.5 billion in the previous quarter, according to Reuters. I am talking about the partner company OpenAI, which developed the popular chat system ChatGPT. It invested roughly $13 billion (K$300 billion) in OpenAI.