Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) CEO Sundar Pichai announced on April 13 that the company would spend $9.5 billion on its U.S. offices and data centers in 2022. The move should add 12,000 full-time jobs. So if you own GOOG stock or thinking about buying, the latest news is very good for Alphabet shareholders.
As the company stated in its announcement, it has spent more than $37 billion over the past five years investing in its U.S. offices and data centers. The investment has already led to the creation of over 40,ooo full-time jobs.
Job creation is one of the best ways investors can tell if a company is growing. Alphabet and Google are definitely in this category. This announcement is excellent news for Alphabet’s future.
GOOG Stock and Job Creation
As the company stated, it has spent $37 billion over the past five years in the U.S., creating 40,000 full-time jobs. In addition, its U.S. revenue grew 125% in these five years, from $52.4 billion in 2017 to $117.9 billion in 2021. Based on $65.5 billion in revenue growth, each new job’s added $1.64 million in U.S. revenue over five years.
While that might not sound like a lot, it’s a very healthy return for the company and its shareholders. For every dollar it invested over the past five years in the U.S. — $37 billion — it generated $1.77 in sales. And the best part is this revenue will continue to multiply over the next five years, delivering a return on investment second to none.
What Does the Company Get for $37 Billion?
It gets plenty from a financial perspective. But, more importantly, the pride Google employees should feel for the contribution it makes to the American economy and all the communities where it has offices and data centers is priceless.
Google’s 2021 Economic Impact Report states that it helped create $617 billion in economic activity across America in 2021. Businesses of all sizes working with Google in one way or another have built a foundation of economic growth. As Google goes, so goes America.
When it comes to investing, Alphabet is a no-brainer as long as it continues to invest in the American worker. So the latest job creation investment news is a big deal for GOOG stock.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.