Stock goes through the roof
Alphabet breaks the 2 trillion sound barrier
April 26, 2024, 10:16 a.m
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Google parent Alphabet presents strong quarterly figures and wants to pay a dividend for the first time. Investors react enthusiastically and the share price shoots up.
The surprisingly strong quarterly figures from Google’s parent company, Alphabet, are generating substantial share price gains. The shares rose by up to 13 percent in after-hours trading. The market capitalization (i.e. the number of shares multiplied by the current price) exceeded the $2 trillion mark.
Only a few companies are in this club, they all belong to the tech stocks known as the “Magnificent Seven”: Microsoft with 2.8 trillion, Apple with 2.6 trillion and the chip maker Nvidia with just over 2 trillion US dollars.
Alphabet generated sales of $80.5 billion in the first three months of the year. The bottom line is that the company earned $23.6 billion. Two announcements also contributed to the after-market price fireworks: Firstly, Alphabet wants to buy back its own shares worth $70 billion. On the other hand, the company will pay a dividend for the first time – and quarterly dividends will continue to flow in the future.