Alphabet, the parent company of Google and YouTube, confirmed its plan to spend $ 75 billion throughout the year, despite the total economic uncertainty that definitions and increase expenditures increase.
The CEO of Sundar Pichai said earlier this month at the company’s annual conference of the cloud computing unit that investment will mostly focus on building the database capacity as an Amnesty International Infrastructure.
This came after Alphabet published profits in the first quarter on Thursday with revenues that overcame expectations, and the shares are sent by more than 4 % in after hours.
“It is clear that we are not immune from the total environment,” said Philip Shendler, chief business official at Google The accusation.
“Maybe to enlarge, I would like to say that we have a lot of experience in administration at unconfirmed times, and we focus on helping our customers by providing deep visions in changing the behavior of the consumer related to their work.”
The minimum exemption by goods worth less than $ 800 to enter the United States without paying duties allowed, which worked for Chinese companies that sell cheap goods to American consumers, especially the fast -clothing retailers.
Naughty Lay, the chief analyst in performance marketing in Forster, told Business Insider that the possibility of staging inflation due to customs tariffs could “enter Google’s ads revenues” during the next few quarters.
Lay said: “Shen and Timo will spend much less than they had before the tariff – it will have a material impact on the higher line of Google,” said Lay. “Every global retail supply chain will become more expensive; I don’t think they can transfer those added expenses to consumers.”
“Going out to eat and travel this summer, advertisers will spend less,” Lay added.
Google also faces increased expenses and legal pressure
In addition to the risks of customs tariffs, Anat Ashkenazi, the financial manager of Google and Alphabet, said during the investor invitation that the company can face the opposite winds “in a significant decrease”, which will put pressure on profits.
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Ashnazi added: “We had about 31 % of growth on an annual basis and a decrease in this quarter, and it will be higher with our progress throughout the year, so I thought about this as the opposite wind that we have to manage,” Ashnazi added. “While we are trying to compensate for the largest amount of the opposite wind associated with increasing infrastructure costs, it will become more difficult.”
According to the semester alphabet report, the total operational expenses of the company increased by 9 % to 23.3 billion dollars compared to the first quarter of 2024, while research and development investments increased by 14 %, driven by an increase in compensation and consumption expenses.
In addition, administrative expenditures increased by 17 %, which was attributed to Ashkenazi to “the effect of fees on legal matters and others.”
Alphabet’s profit calls came on Thursday amid legal pressure to escalate from federal organizers. The Ministry of Justice and several states filed a lawsuit against a monopoly against Google in 2020, and earlier this year, the provincial judge in the capital, Amit Miha, ruled that the company maintained its hegemony by spending billions to make its search engine hypothetical via the main platforms.
Separately, the provincial judge, Leon Bringa, from the eastern province in Virginia this month that Google carries an illegal monopoly in parts of the online advertising industry.
Google and the Ministry of Justice are now being held in the trial of means of recession to determine the actions that the company must take, which can force the company in the worst cases, which can force the company to do so Abstract specific products such as chrome browser.
