Alphabet earnings report indicates that Google’s parent company has posted a strong growth for Q1 of FY2025. The tech giant earned a massive US$34.54 billion in profit, up from US$23.66 billion during the same period last year. Much of this jump was due to gains from investments, not from the company’s daily business operations.
Alphabet’s revenue rose to US$90.23 billion; a 12% increase compared to last year. This was slightly better than the street’s expectations. The company also announced a US$70 billion stock buyback and raised its dividend by 5%. However, Google shares only rose slightly after the announcement.
Despite the strong results, Google is facing a difficult road ahead. The ongoing trade tensions between the U.S. and China are hurting ad sales, especially from Chinese companies like Temu and Shein. These companies are buying fewer ads on Google, which could affect future earnings.
Another big challenge is the rise of artificial intelligence (AI). New search tools powered by AI from competitors like OpenAI and Perplexity are starting to take some of Google’s market share.
Google is also dealing with serious legal challenges. In two separate cases, U.S. judges ruled that Google holds illegal monopolies—one in online search and the other in online advertising technology. Some experts suggest that it might be smarter for Google to break itself up before being forced to by the courts.
Google is still making huge profits and remains a tech leader, but legal battles, rising competition, and economic uncertainty could slow its momentum.
Read more on: Samsung May Shift Manufacturing to India Amid US Tariffs on Vietnam
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Apr 25, 2025, 10:20 AM IST
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