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The alphabet shares increased after reporting double -digit growth in the first trimester, driven by another good performance in his research business and the boom in the artificial intelligence demand for cloud computing.
Revenue increased 12 percent to $ 90.2 billion, while net revenues increased $ 46 to $ 34.5 billion, from the same period a year earlier, Google’s parent company reported on Thursday. The two beat expectations and helped calm the fear of her ability to motivate a trade war and American recession.
The main Google’s search and advertising business increased almost 10 percent to $ 50.7BN in quarter, exceeding estimates between 8 percent and 9 percent.
The figures were given comfort to investors who have looked closely for any soft softness – which makes up 56 percent of group income – due to the popularity of chatbots it as Chatgt of Openai, Claude of Anthropiku and Elon Musk.
They have also been on standby for rehearsals responding by Google’s Gemini Chatbot and he is a summary of that are cannibalizing that essential business by reducing the number of user clicks in ads.
“Search without a strong constant growth, increased by the commitment we are seeing with features as a summary of it,” said Chief Executive Sundar Pichai, referring to the answers generated by what he now shows at the top of many results pages. “We are very relying here, continuing to make the feature in new places, for more users and more questions.”
Main business official Philipp Schindler said “We see money earnings at approximately the same rate” for a summary of it against traditional search links, while refusing to specify the correct user click rates.
Jefferies analyst Brent Thill said the results were “better than fear, with healthy and cloud ads”. He had previously warned that “macroeconomics and tariffs (will) raised a concern over the second and third quarters” and advertising “faces heads” while Chinese retailers reduce costs.
Alphabet shares increased more than 4 percent in the trade after market. The company said it would buy $ 70 billion in stock, in the same amount as last year.
A single profit of $ 8 billion in shares in a private company that did not name the net income growth.
Google is the second major technology company that reports revenues in the wake of US President Donald Trump’s global trade war. Alphabet shares have fallen about 17 percent this year. Like most of its rivals, the company has been affected by concerns about tariffs that disrupt the supply chains and mitigate consumer spending, promoting the fear of an American recession.
“We are not definitely immune to the macro environment,” Schindler said.
This month the White House raised tasks in small packages, which were previously excluded if less than $ 800 was estimated. This made the Chinese groups of E -Commerce Temu and Shein reduce their expenses on digital advertising platforms like Google and Meta.
Schindler said change in politics “will cause an easy head in our advertising business in 2025, mainly by Asian retailers.”
Earlier this week, Tesla warned that tariffs would have a “big” impact on its battery business that relies on components from China. Chief executive Elon Musk pledged to continue lobbying Trump in favor of free trade principles.
But the overall alphabet revenue defeated Wall Street’s $ 89.2 billion consensus, according to IQ Capital.
Its computing division Cloud reported an increase in revenue of $ 28 percent to $ 12.3BN, indicating continuous appetite for its database and network services from the boom to it. However, this slowed from 30.1 percent in the previous quarter, which the alphabet blamed the demand that exceeds supply while competing to bring new data centers online.
Record costs of the alphabet for chips, network equipment and other infrastructure and it continued to increase, reducing investors’ concerns about Big Tech 300BN spending plans this year.
The first quarter’s capital costs increased to $ 17.2 billion, from $ 12 billion last year and slightly more than $ 17.1BN rating. It has predicted that costs will reach $ 75 billion this year, from $ 53BN to 2024.
The company still faces challenges that have lost a number of antitrust cases brought by US regulators against its research business, digital advertising and App Store playing. It can be forced to sell its browser Chrome, end an exclusive search engine partnership with Apple and share more data with rivals.
