If the economy is heading to contraction, Google He did not feel it.
Or at least, he did not feel until March 31.
I mentioned a strong online search giant Q1 results On Thursday, his shares sent up to 5 % after hours, as her main business and cloud companies have achieved health growth. But these results apply to the first calendar quarter of the year, before Trump’s global war is raised seriously.
As for Google’s work conditions, Google does not say. Google-Parent Alphabet executive managers have maintained a disciplined silence on Thursday’s profit on anything that happened in the current quarter, despite analysts’ efforts to get an update.
“It is too early to comment.”
“It is clear that we are not immune from the total environment, but we do not want to predict the potential effects,” Shendler said. (One of the information that the Schindler was ready to share the concealment of the so-called De-MINIMIS that depends on Chinese retailers such as Shein and TEMU, which would cause “minor opposite winds” in the Google advertising in 2025, especially from Asian retailers).
After weeks Disorders in the marketsAnd a variety of fears weighing on Google in particular, the power card report card – in addition to the news that will be issued by an arrow shark and a re -purchase of $ 70 billion in shares – was more than sufficient reason to celebrate investors on Thursday.
Google grew to the highest year on a 12 % annual basis in the first quarter to 90.2 billion dollars, overcoming the average expectations of analysts of $ 89.2 billion, while profits per share amounted to $ 2.81 compared to $ 2.01 expected by Wall Street. The company has strengthened growth to the strong demand of advertisers in the financial industry, insurance, health care and retail trade.
Revenue from ads on the video site YouTube It grew by 10 % from the previous year to 8.9 billion dollars, while Google’s cloud works increased by 28 % to $ 12.3 billion.
The alphabet CEO, Sondar Bishy, tells gains in The company’s artificial intelligence effortsIncluding an “artificial intelligence overview” that is presented through the Google search service, which Pachai now said it is used by 1.5 billion users per month. The company confirmed the confirmation of a pre -announced plan to spend $ 75 billion in the capital expenditures of the cloud infrastructure and the impure organization this year, indicating that it remains optimistic in the business field of Amnesty International.
Many dangers facing Google
It is a difficult time for the alphabet. Going to a profit report on Thursday, the shares of the company decreased about 15 % so far this year, greater than the decline from it Nasdak Or s & p 500.
Alphabet works serious risks on multiple fronts, as economic uncertainty in the Trump tariff pressure his basic advertising works, and a new new reproduction new Artificial intelligence models threaten to disrupt The dominance of online search, and the pursuit of government organizers Dismantling the company.
The court cases and the organizational threats faced by the alphabet were not amazing during a profit call on Thursday, as executive officials highlighted the progress in the various products of the company, from the work of fast -growing YouTube subscriptions to Self -driving Waymo cars.
The fact that the Abulit did not provide detail “Guidance” expectations In her profits, her calls give her some cover to avoid the elephant in the room – the current status of requesting advertisers (contrary to the status of the request in the first quarter).
Since the advertisement represents nearly three quarters of Alphabet’s revenues, the health of the global advertising market in the coming months will be decisive. Declaration and marketing budgets are usually among the first expenses that companies cut into an economic shrinkage, and with uncertainty about definitions, many economists and investors are Anxiety about a possible recession.
If Google’s business is really decreasing in April, the company felt that it was binding at least to provide a kind of warning. For some, the fact that Google remained my mom can be explained as an implicit sign of confidence. Although Shendler avoided questions about the working conditions in April, it has alluded to Google’s experience in the previous economic recession and comparative flexibility of research ads compared to other types of ads.
“For miniaturization, I would like to say that we have a lot or experience in administration at unconfirmed times,” Shendler said.
This story was originally shown on Fortune.com
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