Google’s parent alphabet shares dance while advertising increases revenue in over $ 90b

Google’s parent the alphabet said he would buy stock worth $ 70 billion after reporting the first quarter on road expectations on Thursday.

The shares were dropped 4% in prolonged trading, adding about $ 75 billion to company market value.

The alphabet defeated quarterly income estimates, taking advantage of steady growth in its digital advertising business, which helped compensate silent growth in its cloud computing unit.

President Trump’s trade policy has caused concern for a decline, making companies support their advertising spending. But the analyzes say the digital advertising market still held its ground in the first trimester.

“Research without a constant strong growth, increased by the commitment we are seeing with features such as a summary of it, which now 1.5 billion users a month,” Ceo Sundar Pichai said in a statement.

Google’s main advertising business, which accounts for about 75% of its total revenue, increased 8.5% to $ 66.89 billion in quarter – a slowdown from the increase of the previous trimester 10.6%, but still analyst expectations for an increase of 7.7%.

Google Cloud reported to 28% revenue increase to $ 12.26 billion, slowing down from a 30.1% increase reported last quarter. Analysts were expecting the unit to report $ 12.27 billion, according to LSEG data compilation.

The company reported total revenue of $ 90.23 billion for the first quarter, compared to the average estimate of analysts of $ 89.12 billion, according to data compiled by LSEG.

The alphabet reported a $ 2.81 profit per share for the January-March period, beating with value of $ 2.01 per share, according to LSEG data.

The alphabet spent $ 17.20 billion on capital spending in quarterly, a 43% increase from the same period a year earlier.

It was part of a planned $ 75 billion this year, which chooses a reaffirmed reinstatement earlier this month to build the capacity of the database, although US tariffs threaten to cast a shadow on the capital costs of it.

Pichai said at a time when mass investment was needed to buy chips and build the servers required to burn the alphabet’s essential offers, including searching, while supporting the development of it such as its twin model.

Big Tech has continued to defend its aggressive expenses despite the macroeconomic pressures and competitive threat from Deepseek, China. Amazon’s general manager earlier this month Write with a letter that billion dollars were needed to stay competitive in his space.

But early signs of high technology slowdown in database rents have already begun to show, with TD Cowen analysts saying last month that Microsoft had abandoned some projects in JBA and Europe, while Wells Fargo analysts said this week rented.

With alphabet results showing that demand for digital advertising remains strong, rival advertising shares also increased, with Meta platforms up to 2%, and Amazon and SNAP of both 1% higher in expanded traded trade.