Alphabet, the Google parent company, will announce its results of the first quarter on Thursday afternoon, becoming the first of the US technological giants valued in a billion dollars to announce its results of the first quarter, a period marked by a high economic uncertainty that could weigh on Google, a company with a strong advertising presence.
Key data
In the report that will be published shortly after 4 PM EDT, analysts’ consensus estimates indicate that Alphabet will inform revenues of 89.2 billion dollars and profits adjusted per share of 2.01 (24.8 billion net income), according to Factset.
This is equivalent to an expansion of 11% in income from the first quarter of 2024 and a 6% growth in year -on -year results.
The main search unit of Alphabet, Google is expected to generate 50.5 billion dollars in sales, which represents an annual increase, and it is forecast that its Google cloud, with a large presence of artificial intelligence, generates 12.3 billion dollars, a growth of 28%.
Google’s shares rose on Thursday before launch, winning 1%, but they have fallen 16% so far this year, a little worse than the 13% drop in Nasdaq, with great technological weight, since the fears of an economic slowdown linked to the commercial war of President Donald Trump broadly affected the confidence of investors.
What can move Google’s actions from your earnings?
Investors would probably consider even a first “online” quarter, given the deterioration of business confidence worldwide, predicted Bank of America, Justin Post, in a note to their customers on Monday. However, a disappointment in profits, even if it is due to the unstable macroeconomic situation and not something exclusive to Google, “I could feed the already high competitive and regulatory concerns,” Bank of America’s analyst continued. Google does not usually offer any specific financial forecast for future periods, but investors will be very attentive to any indication about how the management expects the complex macroeconomic panorama affecting your business.
How are Google affected by tariffs?
Google faces a “negative impact on advertising investment due to tariffs”, according to the post, which specifically highlights the decrease in the spending of Chinese and Shein discount stores, since tariffs greater than 100 % imposed by Trump to Chinese imports stop the country’s flow of products towards US consumers. Even so, Google has a “relatively lower” pressure derived from the unstable operational environment, according to the post. Between 4 % and 5 % of Google’s income comes from the expenditure of Chinese companies in American advertising, according to Bernstein analyst, Mark Shmulik, a figure much lower than the exposure of 7 % to 8 % of goal, the Facebook parent company, its main rival in digital advertising.
Cita Crucial
“If investing in American technological actions were difficult right now, financing Google could be almost impossible,” Shmulik wrote Wednesday. Among the huge unknowns surrounding Google are concern about the recession, the tariff exposure, the possibility that the generative AI alters online searches, a “library of regulatory obstacles” and a “possible lightning rod for international reprisals” against US entities, Shmulik explained.
Tangent
Among the “library” of regulatory obstacles facing Google, high profile investigations on monopoly by US prosecutors are included. A federal judge ruled last week that Google maintains an illegal monopoly in advertising technology, and the Department of Justice argued, in an ongoing antitrust case, that the company should be forced to sell its Chrome web browser.
Key history
Google is one of the six technological companies on the west coast with a market value of at least one billion dollars, along with Apple, Microsoft, Nvidia, Amazon and Meta (these companies usually group with Tesla, by Elon Musk, to form the “seven magnificent seven). Google was key in the enormous rebound of technological actions as the popularity of the generative AI was fired, since the price of its actions duplicated by the end of 2022 and 2024. However, the large technological technological ones have stagnated in Wall Street due to the increase of the fear of a recession, since the index of the Magnificent Bloomberg has fallen about 20 % in 20 %.
What to pay attention to
Next week, Amazon, Apple, Meta and Microsoft will publish their results of the first quarter of 2025. Tesla, the least valuable member of the Magnificent seven, published on Tuesday his report of the first quarter, which did not reach the forecasts of benefits or income.
This article was originally published by Forbes Us.
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