[HN Gopher] Alphabet shares jump 12% on earnings beat, first-eve...
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       Alphabet shares jump 12% on earnings beat, first-ever dividend
        
       Author : donsupreme
       Score  : 23 points
       Date   : 2024-04-25 20:12 UTC (2 hours ago)
        
 (HTM) web link (www.cnbc.com)
 (TXT) w3m dump (www.cnbc.com)
        
       | addaon wrote:
       | Interesting that they think they're out of internal projects and
       | acquisitions to (profitably) spend money on. Even more
       | interesting that the stock seems to agree -- I guess investors
       | already believed that growth is over, and are seeing this
       | recognition of that as an alignment between reality and internal
       | strategy.
        
         | sahila wrote:
         | Maybe or investors also know that Meta recently started a
         | dividend and the stock moved up, and they see the same play
         | here and hope for the same results. I don't think the market
         | move is much deeper for most investors.
        
           | nine_zeros wrote:
           | This is basically it. Investors and board reps saw Meta stock
           | go up with dividend. Once they see that, there is no way that
           | they'll not pressure the Google to copy it and boost stock
           | price.
        
         | yoshicoder wrote:
         | honestly, I see this as a sign of Google bureaucracy/cost-
         | cutting taking over the company's culture. Considering how much
         | innovation in tech is happening right now, blowing cash on a
         | dividend rather than internal projects that could make big
         | returns seems like its completed its journey to becoming the
         | next IBM
        
       | ChrisArchitect wrote:
       | Related:
       | 
       |  _Google Earning Q1 2024 [pdf]_
       | 
       | https://news.ycombinator.com/item?id=40162354
        
       | advisedwang wrote:
       | Google has been doing stock buybacks for years. Why are they
       | pivoting to also doing a dividend? Bigger short term stock bump?
        
         | ilrwbwrkhv wrote:
         | All out of ideas. Slowly they will produce less and less real
         | world value but the share price will go higher and higher.
        
         | fancyfredbot wrote:
         | Different shareholders have different preferences for how money
         | should be returned to them.
         | 
         | A buyback is tax efficient but very abstract as the share price
         | may actually fall during a buyback meaning that it's harder to
         | see the money being returned to you.
         | 
         | With a dividend you actually get cash in your brokerage account
         | which is much more visible, even if you have to pay tax on it
         | immediately.
         | 
         | I guess appealing to both groups of investors is better than
         | appealing to just one?
        
       | nextworddev wrote:
       | Time to fade
        
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       (page generated 2024-04-25 23:02 UTC)