Alphabet expects “slight opposite winds” to business ads in 2025, says Execs

President Donald Trump’s commercial policies will have a negative impact on parents alphabetThe company’s executive official said on Thursday that the basic advertising company is the CEO of the company.

The alphabet, which I mentioned In the first quarter of the year, a stronger revenue faces an online advertising market for ready due to concerns about how Trump’s tariff affects the economy and commercial spending. Although the word “tariff” was absolutely not mentioned in the summons of the investor in Alphabet on Thursday, “Macro” has been mentioned several times as investors in the company have questions about the economic effects that are affiliated to the front amid new trade policies.

Many strategies have increased the possibility of recession after Trump announced on April 2 a tariff for goods imports to the United States from dozens of countries. On April 9, Trump Low tariffs In many countries to 10 % for three months.

The alphabet is likely to be affected by the materials needed for technical infrastructure, such as the data centers it uses in its efforts in artificial intelligence. Used effects on advertising decline can also witness budget restrictions.

In the investor’s call on Thursday, Alphabet executive officials said it was too early to know how much they were affected, but they said it is possible that there will be winds of advertising, especially from the Asia Pacific region in the world, or APAC.

“Which other factors you see in vertical advertisements, regions, or groups that can show any signs of weakness?” Brian Novak asked Morgan Stanley.

“We do not want to predict the potential effects that exceed the indication that the changes in minimal exemption will lead to slight opposite winds in our business in 2025, especially from APAC retailers,” said Philip Schindler.and Business official in Google.

Earlier this month, Trump signed Executive order This will impose an obligation represented by 30 % of the value or $ 25 per element on shipments of less than $ 800 to enter the United States, starting from May 2. The fees jump to $ 50 per element on June 1. In February, Trump Abolition That since the thirties of the twentieth century it allowed the import of these beams exempt from the fees. Change brought the logistical challenges to delay the implementation of the policy.

The retail sale, which Shandler said was among the major shareholders in its advertising growth in the first quarter, is at least 21 % of Google’s advertising revenues, according to OPPenheimer & Co. since I have already pulled the road again to spend.

“It is clear that we are not immune from the total environment,” Shendler added.

“Did they start interacting with some of these total tensions we are facing all?” Ross Sandler of Barclays asked about the brands announced on YouTube.

“It is still too early in the second quarter to have a more specific view of things,” Shendler said. He added that Google has “a lot of experience in administration during unconfirmed times.”

“If the macro is weak and we see more slowdown, do you expect to find additional opportunities to reduce more costs?” Doug Animouth asked JPMorgan.

Alphabet CFO Anat Ashkenazi said that the company is still looking at spending 75 billion dollars In capital expenditures in 2025, but the text “may fluctuate the level of investment from a quarter to a quarter due to the impact of changes in the timing of delivery operations and construction tables.”

Executive officials said that the expenses will go towards the technical infrastructure, in the first place of the servers, followed by data and network centers. In February.

Ashkenazi said in a call Thursday, referring to her 2024 commentsShe said that the organization can “always pay a little further” when it comes to cutting costs, which included discounts in the number of employees and real estate.

The CEO of Alphabet Sundar Pichai also mentioned “efficiency” as a way to try to maintain a great company that does not exceed possible total storms.

“If the overall environment will change and become more volatile, how should investors think about the investments that must get this year, almost in nature, in exchange for where there may be greater flexibility?” Eric Sheridan asked Goldman Sachs.

Bishy replied that the company plans to continue to unify the teams and reduce costs in other places, which said, “It should help us in obtaining a more flexible organization, regardless of the total economic conditions.”

Jordan Novet from CNBC contributed to this report.

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