Alphabetical stocks grow as Google search increases profits

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The alphabet also grew up after it reported that the profit in the first quarter increased by 46 percent, due to another good performance in the search business and the boom in demand related to artificial intelligence.

Net income jumped up to $ 34.5 billion. Compared to $ 23.7 billion over the same three -month period a year earlier, maternal company Google It is reported Thursday, helping to lose calmly about its ability to withdraw the trade war and the recession to the US.

Google’s main search and advertising business rose almost 10 percent to $ 50.7 billion per quarter, exceeding the estimates of 8 to 9 percent.

The numbers gave comfort to investors who carefully watched any softness in the search – which accounts for 56 percent of group income – thanks to popularity AI Chatbates such as Chatgpt Openai, Claude Anthropic and Elon Musk’s Grok.

They were also alert for evidence that the answers from their own Google Gemini Chatbot and AI summary are dissolving this basic business, reducing the number of users’ clicks on advertising.

“The search has seen a long growth, which is enhanced by the engagement we see with functions such as AI reviews,” said CEO Sundar Pichi, citing AI-generalized answers, which now points to the top of many pages of results. “We rely strongly here, continuing to deploy this feature in new countries, more users and more requests.”

Chief Business Director Philip Schindler said that “we see monetization at about the same speed” for reviews of AI against traditional search links, refusing to determine the exact rates of users.

Jefferies Brent Thill analyst said the results are “better than they were afraid, with healthy advertising and cloud.” He used to warn that “macroeconomics and tariffs () threw the strip for the second and third quarter” and that the advertisement “faced the wind” when Chinese sellers reduce costs.

Alphabet The shares have grown more than 4 percent in the trades after the market. The company said it would buy $ 70 billion, the same amount as last year.

Google is the second major technology campaign that reports on profits after the US President Donald Trump’s World Trade War. About 17 percent fell this year’s shares. Like most of its competitors, the company suffered concern tariffs Disruption of supply chain and consumer spending mitigation, contributing to fear of recession in the US.

“We are obviously not insured against the macro -public,” Schindler said.

This month, the White House raised duties on small packages that were previously released when less than $ 800 were estimated. It caused Chinese e -commerce theme and Shane kitchen Their expenses for digital advertising platforms such as Google and Meta.

Schindler said the change of policy “will lead to a small wind for our advertising business in 2025, primarily from Asian retailers.”

Earlier this week Tesla warned that tariffs would have “Oversized” impact About its battery business that relies on China’s components. Chief Executive Director Elon Musk has promised to continue lobbying Trump in favor of free trade principles.

But the total revenue of the alphabet increased by 12 percent to $ 90.2 billion for three months before the end of March, winning the consensus for $ 89.2 billion, Capital IQ reports.

Him Cloud calculations The department announced the 28 -percent revenue growth of up to $ 12.3 billion, showing a continuation of the appetite for its data center and network services from the boom in II. However, this slowed down from 30.1 percent in the previous quarter, which the alphabet accused of demanding supply when it rushes to bring new data processing centers online.

The alphabet record costs at the data center, chips and other II infrastructure continued to increase. Capital expenses in the first quarter jumped up to $ 17.2 billion, which is a little more than $ 17.1 billion over $ 12 billion. This year’s $ 75 billion, which will reach $ 53 billion in 2024.

The company is still faced with the problems that have lost the sequence of antitrust affairs that made US regulators against search, digital advertising and games store. It can be forced to sell His Chrome browser, finish the exclusive search engine partnership with Apple and share more data with competitors.