Alphabet’s record Q1

Search and Cloud continue to deliver, as Alphabet announces its first-ever dividend

4/26/24 11:45AM

Alphabet arguably posted the pick of the big tech earnings yesterday, reporting more than $80bn in revenue and a record $25.5bn in operating income. What really got investors going, however, was the news that the company would pay its first-ever dividend alongside a $70bn share buyback plan, sending shares up more than 10% and taking Alphabet into the coveted $2 trillion market cap club.

Reports of the death of Google Search…

… might be exaggerated. Or, at least, early.

In recent years, a number of articles — including a particularly sharp one from Ed Zitron just this week — have outlined the demise of Google Search. While it may be harder than ever to find what you’re looking for on Google, that hasn’t translated into any discernible impact on the search giant's bottom line (yet). The search engine raked in over $46bn in ad sales in Q1 alone... translating to ~$20m of revenue every hour.

Plugging more sponsored results at the top of the Google search bar might make for a worse user experience, but, for now, it also means more money for the company, which is spending a fortune on staying competitive in the AI race. Indeed, the cherry on top was the stellar performance of Google Cloud, which as a division tripled its operating profit, boosted by a rise in demand for all-things-AI (server infrastructure etc).

Why the company has decided to start paying a dividend now is somewhat curious. Maybe it’s run out of suitable ideas to invest that money into… or maybe it’s just so profitable it can do both: pay a dividend and invest for the future.

Max Knoblauch12h

China’s EV startup trio have all become profitable

China’s EV startup trio, Nio, Li Auto, and XPeng, are now all profitable, following the latter’s Q4 results released Friday.

XPeng reported a quarterly net profit of about $55 million, compared to rival Nio’s Q4 net profit (also its first) of about $40 million. Li Auto posted Q4 net profit of less than $1 million.

All three companies being profitable offers a stark contrast to the EV market in the US, where Rivian quietly delayed its 2027 profitability target in a filing about its Uber robotaxi partnership yesterday. Lucid is likely further away, and last month cut 12% of its US workforce as part of its “path toward profitability.”

Still, it’s not all rosy for China’s EV startups, either. XPeng ADRs were down more than 6% in Friday morning trading as its Q1 sales forecast came in below estimates. As China rolls back subsidies, auto sales are slumping. Chinese retail EV and hybrid sales fell 32% in February from the same month last year.

9.3%

Max Knoblauch3/19/26

As the war with Iran produces the biggest spike in US gas prices since Hurricane Katrina, car retailer CarMax is continuing to see heightened interest in EVs, hybrids, and plug-in hybrids.

“From Feb 1st - March 1st (inclusive), compared to March 2nd to March 15th (inclusive), we saw a 9.3% lift in page views for these vehicles,” a spokesperson for the company told Sherwood News.

As industry insiders recently told us, EV interest climbs when gas prices rise. That appears to be holding true even without EV tax credits, which the Trump administration ended under its new budget package.

CarMax also saw EV searches spike in 2022, amid Russia’s invasion of Ukraine and the resulting oil price spike.

Walt Disney Chairman And CEO Bob Iger Rings Opening Bell At NY Stock Exchange

It’s the end of Disney’s Iger era (again)

Incoming CEO Josh D’Amaro is replacing Bob Iger on Wednesday, though Iger will remain a senior adviser through the end of the year.

Max Knoblauch3/18/26

Claire Yubin Oh

trust me.

3/18/26

Small Danish company Trustpilot has become a surprise AI winner

Trustpilot’s profits jumped nearly threefold in 2025, thanks to AI chatbots eager to cite its website in their responses.

$35.4B

Max Knoblauch3/16/26

The tariffs imposed by the Trump administration have cost automakers at least $35.4 billion since the start of 2025, according to a new analysis by Automotive News.

That total will continue to climb this year, since the Supreme Court’s February tariff ruling largely leaves the 25% levy on vehicles and auto parts untouched.

Toyota has taken the biggest hit, projecting more than $9 billion in tariff costs in its fiscal year ending this month, while Detroit’s big three automakers — Ford, GM, and Stellantis — were hit with a combined $6.5 billion tariff charge in 2025.

In the fourth quarter, automakers sold about 8% fewer imported vehicles in the US compared to the same period a year ago, per the Automotive News Research & Data Center.

Tariff charges come at a rough time for legacy carmakers, which are also scaling back EV plans following the Trump administration’s elimination of tax credits and fuel standard goals. According to Automotive News, the cost of EV write-downs and restructuring is, so far, nearly $70 billion.

Alphabet’s record Q1

Reports of the death of Google Search…

More Business

China’s EV startup trio have all become profitable

It’s the end of Disney’s Iger era (again)

Latest Stories