Google parent reports another quarter of robust growth, rolls out first-ever quarterly dividend

Google’s corporate parent Alphabet Inc. on Thursday released a quarterly report showing it’s still reaping double-digit revenue gains from its digital advertising empire while sowing potentially lucrative new ground in artificial intelligence.

The results for the first three months of the year provided the latest evidence that Google has regained its momentum after an unprecedented downturn in 2022 coming out of the pandemic.

Alphabet punctuated its renewed vigor by also disclosing plans to begin paying shareholders a quarterly dividend for the first time since since Google went public 20 years ago. It’s something that two older technology powerhouses, Microsoft and Apple, have been doing for years. Alphabet's quarterly dividend of 20 cents per share will be paid June 17.

Investing.com analyst Thomas Monteiro praised the decision to pay a dividend as “a breath of fresh air for the tech market” that should also make investors more likely to support the increased amounts that Google will likely need to spend on developing AI products that could take years to pay off.

In the January-March period, Alphabet’s revenue rose 15% from the same time last year to $80.54 billion, which surpassed the projections of analysts surveyed by FactSet Research. It marked the fourth consecutive quarter of accelerating year-over-year revenue growth for the Mountain View, California, company.

Alphabet earned $23.66 billion, or $1.89 per share, a 57% increase from last year's comparable quarter. The earnings per share also eclipsed the analyst estimates that steer investors.

The company's stock price soared by nearly 16% in Thursday's extended trading after the news came out. That reaction was a stark contrast to how investors responded to a report covering the same quarter from Facebook's parent. Meta Platforms also reported a surge in ad revenue but provided a disappointing outlook for the April-June period, while also warning its profits would be squeezed by increased spending on AI technology.

As has been the case since throughout the company's history, most of the money came in through a digital advertising network anchored by Google’s dominant search engine. Google’s ad revenue totaled $61.66 billion in the first quarter, up 13% from last year.

Despite the ongoing success, Google is facing dual threats that could threaten its future growth.

The U.S. Department of Justice is taking aim at its search engine a lawsuit alleging the company has abused its power by negotiating lucrative deals with Apple and other companies to give it an unfair advantage over potential rivals, stifling innovation as well as competition.

After a two-month trial last fall, the closing arguments in the biggest U.S. antitrust case in a quarter are scheduled to unfold next week and a federal judge is expected to rule whether Google has been breaking the law by the end of this year.

People also may not need to rely as much on Google’s search information to answer their questions and find other information as the artificial intelligence technology that Google, Microsoft and other industry stalwarts are building becomes more sophisticated. If AI gradually supplants the role that Google’s search engine has filled for the past quarter century, Alphabet’s ad sales also could dwindle.

FILE - In this Feb. 14, 2018, file photo the logo for Alphabet appears on a screen at the Nasdaq MarketSite in New York. Alphabet reports earnings on Thursday, April 25, 2024. (AP Photo/Richard Drew, File)

WASHINGTON (AP) — A driver died after a vehicle crashed into a gate at the White House Saturday night, but the fatal collision is being investigated “only as a traffic crash” and there was no threat to the president’s residence, law enforcement authorities said.

The male driver, who was not immediately identified, was found dead in the vehicle following the crash shortly before 10:30 p.m. at an outer perimeter gate of the White House complex, the U.S. Secret Service said in a statement.

The Washington Metropolitan Police Department said the vehicle crashed into a security barrier at the intersection of 15th Street and Pennsylvania Avenue NW.

“At this time, the incident is being investigated only as a traffic crash by MPD’s Major Crash Investigations Unit," the metro police said in a statement posted on social media.

Security protocols were implemented but there was no threat to the White House, the Secret Service said.

The Secret Service will continue to investigate the matter, while turning over the fatal crash portion of the investigation to the metro police, the agency said.

FILE - The White House is visible through the fence at the North Lawn in Washington, on June 16, 2016. A driver died Saturday night, May 4, 2024 after crashing a vehicle into a gate at the White House, authorities said. (AP Photo/Andrew Harnik, File)