Alphabet, Microsoft earnings show hefty AI bets are driving growth

Alphabet and Microsoft ignited a rally in technology stocks on Friday with earnings that showed big AI investments were driving growth, allaying doubts that their costly bets would take time to pay off after a soft forecast from Meta Platforms.

Alphabet rose 10%, crossing $2 trillion in market value with a gain of about $180 billion as it sweetened the pot for investors with its maiden dividend and a $70 billion stock buyback.

The world’s fourth most valuable firm flirted with the milestone on an intraday basis over three years ago although it never closed above that level, according to LSEG Datastream.