Alphabet shares shot up 10% on Friday after the company posted better-than-expected first-quarter results and greenlit its first-ever dividend and a $70 billion buyback.
It’s the sharpest rally for the stock since a 16% jump in July 2015. The shares closed the day at $171.95, valuing Alphabet at over $2.1 trillion.
The company on Thursday reported revenue of $80.54 billion, a 15% increase from a year earlier and the fastest growth rate since early 2022, surpassing the $78.59 billion in sales expected by analysts polled by LSEG. Earnings of $1.89 per share eclipsed the $1.51 in earnings per share expected by Wall Street.
Alphabet announced that its board authorized a dividend of 20 cents per share to be paid on June 17 to all shareholders of record as of June 10, and said it intends to pay future quarterly cash dividends. The company said the board also approved the repurchase of an additional $70 billion in stock.
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