Bloomberg Businessweek
Instant Reaction: Alphabet Sales Beat on Google Search Advertising
Apr 24, 2025
Mandeep Singh, Senior Tech Industry Analyst at Bloomberg Intelligence, unpacks Alphabet's impressive quarterly performance, with revenue surpassing expectations thanks to strong search advertising. He discusses Google's strategic pivots in the face of AI competition and how the company is adapting to maintain profitability. The conversation highlights Google's robust growth in cloud computing and the implications for its financial outlook, emphasizing the ongoing evolution of advertising dynamics in a rapidly changing tech landscape.
17:48
Episode guests
AI Summary
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Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Alphabet's first-quarter revenue of $76.5 billion reflects its strong performance in search advertising, exceeding analysts' expectations amid AI integration.
- The growth potential of Google’s cloud computing segment, projected to rise 25% to 30%, highlights its importance in diversifying revenue streams beyond search.
Deep dives
Ad Revenue Insights
The podcast highlights the strong performance of Alphabet, notably in its search advertising sector, which exceeded analyst expectations. Analysts indicate that despite concerns about AI potentially diminishing ad revenues, Google's integration of AI did not negatively impact their profit margins. In fact, the company continues to effectively monetize queries through advertisements even with the introduction of AI summaries. This adaptability demonstrates Google's capability to maintain revenue growth while navigating the competitive landscape of digital advertising.
