Google’s profits increased by 28 % in the opening quarter of this year, and overcame the competitive and legal threats facing its Internet empire amid an economy that has a global trade war.
The numbers issued on Thursday were indicated by Google Parent Alphabet Inc. Until the company is raising to the challenge until now, but it is possible that investors are concerned about the upcoming troubled times.
Mountain View, California, received $ 26.5 billion, or $ 2.15 per share, during the January to March period, from $ 20.7 billion, or $ 1.64 per share, at the same time last year. Revenue increased by 12 % from last year to $ 96.5 billion. The results have easily exceeded analysts’ expectations, according to the FactSet research.
“We continued to see health growth and momentum throughout the work,” Sondar Pachay, CEO of Alphabet, told analysts on Thursday.
Alphabet shares gain 4 % in the stretch trading after the numbers appear. The shares have decreased by 16 % since the end of last year.
Google’s performance in the first quarter showed the continuous power of the long -standing search engine in a sea of uncertainty. While the emerging competitive threats such as artificial intelligence technology struggle, Google also fights the decisions of the court that condemns the search engine and the digital advertising network as illegal monopolies.
The disorders driven by artificial intelligence have opened new opportunities for people to find advice, visions and useful information through the search options for more conversation than Openai and Perplexity.
The long -standing search engine faces new competition with A feature called an artificial intelligence overview The above web links appear in their results. It also tests a The conversation tool is called artificial intelligence mode This would enter into a more radical change of her business model.
“The company has provided a sound response to those who question the hardship of research work amid the demand for increased artificial intelligence,” said INVesting.com.
But Google is trying to maintain its work sound from the attempts of the US Department of Justice To dismantle the company And imposing other restrictions after a federal judge last year The search engine described it as an illegal monopoly. To make things worse, Its digital ads network It was also found that it illegally controlled its authority earlier this month in another case submitted by the Ministry of Justice.
Injecting the trade war of President Donald Trump more uncertainty in this mix by shaking financial markets amid fears that the definitions will increase inflation while withdrawing the economy to stagnation. Although Google digital services are not directly affected by definitions, the recession is likely to reduce spending on ads that generate most of the alphabet revenues.
But there were few signs of slowing down in the past quarter. The total Google advertising revenue during the period was $ 72.5 billion, an increase of 11 % over the same time last year.
Encouraged the alphabet to determine plans to invest 75 billion dollars on artificial intelligence and other technologies this year with approval of a $ 32 billion deal to purchase the Cypranic Security Company WIZ.