Google Surpasses Another Milestone, Enters $2 Trillion Market Cap Club

Google Surpasses Another Milestone, Enters $2 Trillion Market Cap Club

Investors applauded 'Alphabet' the parent company of Google. The $2 trillion milestone came after the business's results, which exceeded projections.

Vikrant DurgaleUpdated: Monday, April 29, 2024, 12:23 PM IST
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Google Crossed 2 trillion Market Cap | Photo credit: Google website

Investors applauded the parent company of Google. Alphabet announced a $70 billion stock buyback and its first-ever dividend of 20 cents a share. The $2 trillion milestone came after the business's results, which exceeded projections in terms of revenue thanks to the success of its cloud computing division. AI growth drove demand for cloud services.

Alphabet Inc. surged sharply above a $2 trillion market capitalization on Friday, as investors were reassured by a robust earnings report that the parent company of Google will play a significant role in artificial intelligence.

With a 9.7per cent gain to $171.14, the stock was valued at $2.14 trillion. The advance was one of the biggest single-day value additions in stock market history, increasing the company's market capitalization by nearly $187 billion. This year, shares have increased by 23per cent, while the Nasdaq 100 Index has gained 5.5per cent.

Although Alphabet has crossed the $2 trillion threshold intraday once before in 2021 and once more this month, this is the first time the business has done so. With this accomplishment, they join an extremely select group of businesses that include Microsoft, Apple, Nvidia, and Saudi Aramco all of which have generated revenues of more than $2 trillion.

Notably, earlier this year, Nvidia also accomplished this feat, driven by the enormous demand for its AI chips. Another digital behemoth, Amazon, is not far behind, almost hitting the $2 trillion threshold.

Reaching this accomplishment wasn't without its challenges. Alphabet's stock has been volatile as a result of public criticism directed towards their artificial intelligence offerings. Despite large investments made in the field over the course of the year, investors had doubts about the company's ability to compete with rivals like OpenAI prior to the most recent report.

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