By Deborah Mary Sophia and Kenrick Cai
(Reuters) -Google Parent Alphabet is quietly minded Jittery Tech Investors that his AI investments are powering earnings in his vital advertisement business on Thursday, reducing any impact of world -wide economic uncertainty, for the time being.
Profit and revenue first quarter of the search giant beat expectations, and the company said it would buy $ 70 billion back in stock, pushing its shares up 4% after the market and adding $ 75 billion to its market value.
The alphabet reaffirmed its ambitious AI Building Plans and supported its $ 75 billion Capex Guide for the year, offering hopes for investors in Meta and Amazon, whose shares also rose in postmarket trading.
US President Donald Trump's trade policy has triggered the concerns of economic downturn, encouraging companies to rethink their expenditure on advertising. It has also promoted investors' concern that the giants of technology may have to delay or slow down their ambitious infrastructure buildings due to increased costs of tit-for-tat tariffs between the US and China.
Big Tech has continued to defend its aggressive AI investments, saying these are necessary to remain competitive. But analysts have said that early signs of prestigious technology withdraw on the commitments of new data centers.
“I saw the narrative around infrastructure expenditure as a particularly negative narrative in the market, suggesting that AI investments peaked and this is a sign that the bubble is discharging. And I think that Google said to us today was not the case,” said Will Rind, CEO of Graniteshares Graniteseser Global ETF.
Revenue from the main business of Google's primary support, which forms nearly three-quarters of its overall revenue, rose 8.5%to $ 66.89 billion in the quarter-aride of the previous quarter's increase of 10.6%, but still exceeds the expectations of analysts for a 7.7%increase.
Still, Google's Chief Business Officer, Philipp Schindler, told analysts during a conference call that the company was not immune to macro -economic uncertainty.
“The changes to de minimis exception will obviously cause a small headgear to our ads business in 2025, mainly from APAC -based retailers (Asia and the Pacific),” he said, referring to Trump's order this month to end a trade rule that allows low -value packages from China and Hong Kong to enter US duties.
Some of the greatest US advertisers include Temu and Shein Chinese e-commerce websites, and they suddenly violated their digital advertisement expenditure in the US, showed industry data, in a move that could put ads revenue in Google Meta and Facebook.