Alphabet, the parent company of Google and YouTube, said its first quarter results on Thursday after the closing of the market, mainly exceeding the estimates of initial income, which increased shares by 4%.
Alphabet Inc., made up of Google and a collective of companies called other bets, announced its profits in the first quarter on Thursday at a conference call.
Google CEO Sundar Pichai said in a statement that the “results of the company’s solid Q1s, which reflect healthy growth and momentum through the company”, reflect its “AI -Full AI” approach to AI “.
“This quarter was super exciting because we have deployed Gemini 2.5, our most intelligent AI model, which achieves breakthroughs in performance and is an extraordinary foundation for our future innovation,” said Pichai in the results report. “Research has experienced strong strong growth, stimulated by the commitment that we see with features such as IA previews, which now has 1.5 billion users per month.”
Investors attentive to investors also listen closely to updates to the activities of the alphabet cloud, which has become a vehicle for its activities in artificial intelligence. The slowdown in the growth of cloud activities and a larger capex forecast than expected for 2025 sent alphabet shares more than 8% in February.
Despite 28% of the growth in annual sliding compared to the first quarter in 2024, Google Cloud has always become the only source of income which has not succeeded in initial estimates.
Alphabet unveiled its most ambitious generative AI in 2023 with Bard, which later became Gemini. Gemini users have developed considerably, but he still drags far behind the Chatpt and the Openai meta-au.
Meanwhile, Google is faced with new competition in research, a sector that he has dominated for a long time. Although Emarketer’s main analyst, Evelyn Mitchell-Wolf, says that Google’s research activities have not yet been delayed on new rivals such as the perplexity and depth of China, it is not impossible.
“While the new rivals display their offers and attract a larger share of requests, two-digit growth for Google research is not ensured,” said Mitchell-Wolf.
Investors have also listened to how President Donald Trump’s prices affect technological society. Commerce secretary, Howard Lunick, said technological products would be excluded from reciprocal prices but could be subject to additional prices in the future.
Mandeep Singh, analyst at Bloomberg Intelligence, said in an analyst’s note that alphabet’s commitment to its CAPEX directives of $ 75 billion suggested that its exposure to prices “is limited to cloud infrastructure and equipment sales”.
Here are the key numbers of the fourth quarter compared to the estimates of analysts compiled by Bloomberg:
- Profit by action: $ 2.81 against $ 2.01 expected
- Income: $ 90.23 billion against $ 89.1 billion expected
- Google advertising income: $ 66.89 billion against $ 66.39 billion expected
- Youtube advertising income: $ 8.93 billion against $ 8.94 billion expected
- Income on Google Cloud: 12.26 billion dollars against 12.31 billion dollars expected
Thursday’s winning call came while the alphabet sailing towards a meticulous examination of federal regulators. The Ministry of Justice and several states have filed an antitrust complaint against Google in 2020. Four years later, a federal judge ruled that Google had spent billions to make its search engine on iphones, Android devices and web navigators.
“After having carefully considered and weighed the testimony and evidence of the witnesses, the court reached the following conclusion: Google is a monopolyist, and he acted as one to maintain his monopoly,” wrote the district judge Amit Mehta.
This month, judge Leonie Brinkema of the American district court for the Virginia Oriental District judged that Google has an illegal monopoly on specific online advertising markets.
Brinkema wrote in its decision that the Ministry of Justice and the States which filed an antitrust complaint against Google proved that the company “deliberately engaged in a series of anti -competitive acts to acquire and maintain the monopoly power in the publisher’s advertising server and the advertising exchange markets for open display advertising.”
“For more than a decade, Google has equaled its advertising server and its exchange of advertisements by the advertising server through contractual policies and technological integration, which has enabled the company to establish and protect its monopoly power on these two markets,” wrote Brinkema.
Google and the Ministry of Justice are now in the midst of a trial for appeal linked to the search engine decision. The two parties will make arguments before a judge determines the appropriate appeal on the market. Google, for its part, tries to avoid being forced to sell certain products, such as the Chrome browser.
businessinsider
