- Alphabet shares rose after the company topped Wall Street estimates and showed growth in its advertising and search business.
- The company suggested that it’s too soon to tally the impact of Trump’s tariffs, but the ending of the de minimis loophole could create a “slight headwind” to its advertising business.
- Bank of America analyst Justin Post said that Wall Street is underestimating the “monetization ramp” from Google’s AI Overviews tool and cloud demand fueled by AI.
Alphabet‘s stock gained 1.7% on Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley’s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenue. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenue grew 12% year over year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
https://www.cnbc.com/amp/2025/04/25/alphabet-stock-search-advertising-earnings.html
