(AOF) – Alphabet, Google’s parent company, jumped 9.52% to $170.84 and took second place in the S&P 500 index while Microsoft (+2.58% to $409.33) is leader of the Dow Jones. The Internet and cloud giant has done flawlessly: the vast majority of its activities have done better than expected and the remuneration of its shareholders will be improved. In particular, it will pay a dividend for the first time. Great publication also for Microsoft, whose profits exceeded expectations, as did the growth of Azure, boosted by artificial intelligence.
Alphabet will pay its first dividend
In the first quarter, Alphabet reported net income of $23.66 billion, or $1.89 per share, compared with net income of $15.05 billion, or $1.17 per share, a year ago. earlier. The Bloomberg consensus stood at just $1.53.
The turnover of the Internet and cloud giant, for its part, increased by 15% to 86.54 billion dollars. It increased by 16% at constant exchange rates. Its advertising revenues are up 11% to $65.52 billion while Wall Street was targeting $60.2 billion. Excluding traffic acquisition costs, Alphabet’s revenue came in at $67.59 billion, beating analysts’ projections of $66.1 billion.
As icing on the cake, the company also announced that it would pay a dividend of 20 cents per share, the first in its history, and that it would repurchase shares for an additional $70 billion. Alphabet is following the example of Meta, which announced last February that it would pay its first coupon.
Azure accelerates
In the third quarter, ended at the end of March, Microsoft saw its net profit jump 20% to $21.9 billion, or $2.94 per share. Revenue increased 17% to $61.9 billion. It also increased by 17% at constant exchange rates. Analysts polled by Bloomberg anticipated $2.83 per share and $60.9 billion respectively.
The Redmond (Washington) firm continued to benefit from the dynamism of its Intelligent Cloud division, which oversees products and services related to servers, such as Windows Server, SQL Server and Azure (commercial cloud). Its sales jumped 21% to $23.7 billion.
Closely watched by analysts because it has been the driving force of the group in recent years, Azure has seen its sales increase by 31%. Wall Street expected an increase of 29% after an increase of 30% in the previous quarter. Growth was supported by 7 points by artificial intelligence services.
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