Alphabet stock surges on earnings beat, dividend announcement

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Alphabet reported Q1 earnings on Thursday that beat estimates. The company also announced its first-ever dividend.

) gained more than 11% in pre-market trading on Friday, following standout quarterly results that beat revenue and earnings estimates and stoked investor excitement with the announcement of a cash dividend program of $0.20 per share.“Our results in the first quarter reflect strong performance from Search, YouTube and Cloud," said CEO Sundar Pichai in a statement on Thursday.

Pichai said the company has clear paths to monetize AI breakthroughs through advertising, cloud, and subscriptions. Investors are also wary of the costs associated with AI versus the return. Alphabet's report arrived a day after its advertising rival and Big Tech peer Meta noted that expenses for the year are growing and that it will take some time before AI investments generate significant revenue. The comments helped send Meta shares tumbling more than 10%.Alphabet reported capital expenditures for the quarter of $12 billion, mostly tied to servers and data centers.

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