Financial Performance and Market Reaction
Google's parent company, Alphabet Inc., reported a 50% increase in profits for the January-March 2025 period, with earnings reaching $34.5 billion or $2.81 per share, surpassing analysts' expectations.
Following the announcement, Alphabet's stock surged over 4% in extended trading, recovering from a 16% decline since the end of the previous year.
Strategic Responses and External Challenges
To counter AI-driven competition, Google introduced features like AI Overviews and is testing a conversational tool called AI Mode, aiming to adapt its business model to evolving technology demands.
Despite legal battles over its search engine and digital ad network being labeled as illegal monopolies, and the uncertainties introduced by the global trade war, Google reported a steady ad revenue growth of 8% to $66.9 billion.