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

Google parent the alphabet said he would buy shares worth $ 70 billion after reporting the first quarter on Wall Street’s expectations 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 rethink their advertising spending. But analysts say the digital advertising market still held its ground in the first quarter.

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

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

Google Cloud reported an increase in revenue of 28% 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 estimates 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 spending this year, which Pichai reaffirmed earlier this month to build the capacity of the database, although US tariffs threaten to throw 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 research, while supporting the development of it such as its twin model.

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

But the early signs of technology diplomas slowing down in the 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 had delayed some new rental engagements.

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