There is no one to google: his advertising business goes like a shot (despite tariffs)

Google may have to brew more and more competitors in the AI ​​branch that threaten their dominance in the territory of internet searches and that the new one and that the new and controversial donald tariff policy of Donald Trump can eventually make a dent in its advertising division, but During the first quarter of the year the advertising business of the Internet giant progressed properly And he did not resend the least despite the prodigal environment in challenges that the Mountain View company faces today.

In the period between January and March 2025, Google’s advertising revenues picked up 8.5% to 66.9 billion dollars (approximately 58.9 billion euros). With such bulky figures, Alphabet’s subsidiary managed to slightly exceed the initial expectations of analysts and the value of their titles fired more than 4% in the stock market parqués yesterday.

The revenues emanating from Google’s advertising business continue to agglutinate most of Alphabet’s billing. And the growing apogee of the AI, capable of responding directly to the user’s consultations without him having to click on any link, does not seem to be subtracting strength from the company’s advertising business in its celebrated search engine. In addition, and aware of the AI ​​pull, Google has already begun to implement this technology in the results thrown by its search engine through function AI Overviewwhich already has 1,500 million monthly users, said Pichai, CEO of Alphabet yesterday.

Beyond searches, The AI ​​also makes its way in the code used in the multiple Google serviceswhich is currently preformulated with the help of this technology and is then completed by humans of flesh and blood. In the past this task was carried out, on the contrary, mainly manual, Pichai emphasized.

Google successfully dribble the effect of Trump’s tariffs

During the first quarter of the year Google managed to overcome the potentially corrosive effect of the new Donald Trump tariffs. Even so, from next May shipments from China that have a value equal to or less than $ 800, they will be subject to the United States to import rates equivalent to 90% of its value or $ 75 per shipment (an amount that will rise to $ 150 to from June 1). This new tariff policy will fully affect Titans of electronic commerce as Shein Y Temu, that until now they benefited from the so -called “minimis” exemption, which is the one that has allowed them to prosper the seas. Both Shein and Temu have always opted strongly for Google and a goal as advertising platforms, but both “players” have already thrown the brake on their advertising investment in the United States in these two channels as a result of Trump’s new tariffs (which could be noticed in the results of the Mountain View company during the second quarter of the year).

If we stop at Alphabet’s global billing, the company’s revenues will grow by 12% to 90,230 million dollars. Even better went to the American multinational in the chapter referring to billing. Between January and March 2025 Alphabet’s profits hit a 46% stride to 34,540 million dollars.

Behind such a remarkable increase in the benefits of the Google matrix during the first quarter of the year is the Revaluation of group participation in a company not quoted in the stock market which resulted in the income of 8,000 million dollars in the Alphabet coffers. That company would be, according to BloombergSpacex, Elon Musk’s aerospace company. About a decade ago the company took part in a financing round convened by Spacex.

Today Alphabet and Elon Musk are, however, rivals. The Tesla CEO intends to launch a “robotaxis” service in Austin (Texas) next June. And Waymo, a subsidiary of Alphabet, is a leader in the field of activity in which Tesla will debut soon. Waymo’s autonomous cars already make more than 250,000 trips with passengers a week, Pichai said yesterday.

Waymo exceeded the border of the 200,000 weekly trips at the end of February And since then the platform has been integrated into Uber in the city of Austin and plans to also expand its services to San Francisco. In addition, from next year the autonomous vehicles will also foreseeably in Washington, among other cities.

Equipped both with cameras and sophisticated laser radars (absent, however, in Tesla’s “robotaxis”), Waymo’s autonomous cars are extraordinarily burdensome and this would ultimately prevent Alphabet’s subsidiary from reaching the longed for profitability. Even when Alphabet does not share specific data on the results of this company, The division of which this is part recorded in the last quarter losses of almost 1,230 million dollars and revenues of 450 million dollars.