Alphabet jumps 3% as search, advertising units show resilient growth:

Alphabet’s first-quarter report on April 25, 2025 sent the stock up roughly 3 percent after the company topped Wall Street expectations and demonstrated that its core search and advertising engines remain robust even amid AI-driven competition and tariff uncertainty. Revenue grew 12 percent year-over-year to $90.23 billion (vs. $89.12 billion expected), while diluted EPS jumped to $2.81, lifting net income 46 percent to $34.54 billion. Advertising sales climbed 8.5 percent to $66.89 billion, with “Search and other” up 9.8 percent to $50.7 billion and YouTube bringing in $8.93 billion, just shy of forecasts. Management noted that eliminating the U.S. de minimis import exemption in May could create a modest headwind for Asia-Pacific ad spending, but said it is too early to gauge the broader impact of new tariffs. Meanwhile, Google’s AI Overviews feature has expanded to 1.5 billion monthly users, and analysts argue the market is still underestimating the monetization potential of this tool and AI-related cloud demand. Overall, the results reassured investors that Alphabet’s legacy businesses are holding up while its aggressive generative-AI rollout opens new growth runways.

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