Alphabet Inc Class C (NASDAQ:GOOG) stock rallies 10.14% (As on April 26, 11:50:01 AM UTC-4, Source: Google Finance) after the company posted standout quarterly results that beat revenue and earnings estimates  and announced its first-ever dividend of 20 cents a share alongside a $70bn stock buyback, buoyed by a rise in earnings across its main business lines. The company is consolidating teams that focus on building artificial intelligence (AI) models across Google Research and Google DeepMind to further accelerate our progress in AI. AI model development teams previously under Google Research in our Google Services segment will be included as part of Google DeepMind, reported within Alphabet-level activities, prospectively beginning in the second quarter of 2024.

GOOG in the first quarter of FY 24 has reported the adjusted earnings per share of $1.89, beating the analysts’ estimates for the adjusted earnings per share of $1.53. The company had reported the adjusted revenue growth of 16 percent to $80.5 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $79 billion. Google’s Cloud business revenue rose 28 per cent to $9.6bn as companies seek access to the vast computing power and chip infrastructure to train LLMs and ride the AI wave. Google’s search advertising and YouTube platforms powered the gains.  Revenue from search advertising soared 14 per cent to $46.2 billion. But with competition growing from Meta and Snap Inc, Google’s powerful advertising business shows enervating signs, that may not sound encouraging for it. YouTube also recorded a stellar financial performance, with revenues of $8.1 billion, aided by improved efforts in the monetization of ads and tougher policies towards ad blockers. Alphabet’s Other Bets revenues, including Waymo and Verily, amounted to $495 million, yet it reported losses, indicating the problems it faces and sectors of growth that the company will be working on. Alphabet’s operating margin has expanded to 32 per cent from 25 per cent a year ago, beating expectations for 29 per cent.

Alphabet’s capital expenditure rose to $12bn, more than the $10bn forecast, and chief financial officer Ruth Porat said the company would spend at least that amount per quarter for the rest of the year. That means spending would rise to at least $48bn this year from $32.3bn in 2023, an increase of almost 50 per cent.