Alphabet Inc., Google’s parent company, reported robust growth in the first quarter, with a 15% increase in revenue to $80.54 billion.
The company announced plans to pay shareholders a quarterly dividend of 20 cents per share for the first time since going public 20 years ago.
Driving the news: Despite ongoing success in digital advertising, Google faces threats from a U.S. Department of Justice lawsuit alleging antitrust violations related to its search engine.
- Google’s cloud computing division saw rapid growth with a 28% increase in revenue to $9.57 billion, driven by advancements in artificial intelligence technology.
- Alphabet’s stock price surged by nearly 13% in extended trading following the earnings report, potentially pushing its market value above $2 trillion.
- Concerns have been raised by Google employees regarding AI technology used in Project Nimbus amid allegations of being deployed in the Gaza war, leading to protests and subsequent employee terminations.
- Alphabet ended the first quarter with nearly 181,000 employees, showing a decrease of nearly 10,000 workers from the previous year due to strategic layoffs to boost profits while investing in AI technology.
