Alphabet's First-Ever Dividend

Plus, Microsoft's cloud strength.

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Today is Friday, April 26, 2024.

The Early Bird Index today is 67.44.

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Alphabet's First-Ever Dividend

Google parent Alphabet (Nasdaq: GOOGL) jumped 11.56% in after-hours trading on Thursday after the technology giant posted strong financial results.

Financials: Alphabet reported earnings of $1.89 per share in the past quarter and revenue of $80.5 billion; both were better than expected.

Details: Revenue for Google Cloud, Google Search, and YouTube was much higher than expected.

Powering the Story: Alphabet is giving a dividend for the first time ever. The company’s first quarterly dividend will be $0.20 per share. Alphabet is also rolling out a $70 billion stock buyback to raise the stock price.

Also: To further its push into AI, Alphabet said it is consolidating teams focusing on AI models across different products to grow its AI development.

Stock Price: Alphabet was up 13% in 2024 before these results, including a 4% gain in the last 30 days.

Final Thoughts: Similar to Meta Platforms (Nasdaq: META), Alphabet is also (finally) giving out a dividend to investors. We all expected Alphabet’s AI ambitions to be strong. On top of that, the digital ad market is also growing.

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Notable Earnings Today: AbbVie (NYSE: ABBV), Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Colgate-Palmolive (NYSE: CL), LyondellBasell (NYSE: LYB), Newell Brands (Nasdaq: NWL), Piper Sandler (NYSE: PIPR), Roper (Nasdaq: ROP), Charter Communications (Nasdaq: CHTR), T. Rowe Price (Nasdaq: TROW), HCA (NYSE: HCA), AutoNation (NYSE: AN), Autoliv (NYSE: ALV), Centene (NYSE: CNC), Ball Corp (NYSE: BALL), Aon (NYSE: AON), Barnes Group (NYSE: B), First Hawaiian (Nasdaq: FHB), Gentex (Nasdaq: GNTX), Saia (Nasdaq: SAIA), TriNet Group (NYSE: TNET), U.S. Silica (NYSE: SLCA), WisdomTree (NYSE: WT).

Notable IPOs Today: Key Mining Corp. (NYSE American: KMCM), CleanCore Solutions Inc. (NYSE: ZONE).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Microsoft's Cloud Strength

Microsoft (Nasdaq: MSFT) rose 4.31% in after-hours trading on Thursday after releasing good financial results.

Financials: Microsoft reported earnings of $2.94 per share in the past quarter and revenue of $61.9 billion; both were better than expected.

Powering the Story: Revenue for Microsoft Cloud jumped 23% in the quarter to $35.1 million.

Final Thoughts: Microsoft is up 7% this year thanks to its AI tools, but don’t forget that Microsoft also has a robust cloud business.

Snap’s Surprise Profit

Snapchat parent Snap (NYSE: SNAP) soared 24.56% in after-hours trading on Thursday after reporting a surprise profit in the past quarter.

Details: The tech company hit profitability thanks to a 21% increase in revenue.

Final Thoughts: Snap was down 29% in 2024 before these results. The company is turning things around as the digital ad market improves.

Lower Expectations: The Dream of Fed Rate Cuts Is Slipping Away (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.