Key Takeaways Alphabet beat Q1 earnings expectations by 39% with EPS of $2.81 compared to estimates of $2.02. Google Search, YouTube advertising, and Google Cloud each had double-digit revenue growth during Q1. The strong diversification in Alphabet's Q1 results couldn't have come at a better time.Alphabet (GOOGL)  shares had spiked as much as +4% in today’s trading session, with the tech conglomerate blowing away its Q1 earnings expectations after-market hours on Thursday.The strong diversification in it ...

Financial Performance - Revenues increased from $80,539 million in Q1 2024 to $90,234 million in Q1 2025, representing a growth of 9.5%[16] - Net income rose significantly from $23,662 million in Q1 2024 to $34,540 million in Q1 2025, an increase of 45.9%[16] - Comprehensive income increased from $23,225 million in Q1 2024 to $35,254 million in Q1 2025, a growth of 51.7%[19] - For the three months ended March 31, 2025, total revenues increased to $90.234 billion, up from $80.539 billion in the same period of 2024, representing a growth of approximately 8.5%[119] - Google Services revenue rose to $77.264 billion in Q1 2025, compared to $70.398 billion in Q1 2024, reflecting an increase of about 9.5%[119] - Google Cloud revenue grew to $12.260 billion in Q1 2025, up from $9.574 billion in Q1 2024, marking a significant increase of approximately 28.0%[119] - The total income from operations for Q1 2025 was $30.606 billion, compared to $25.472 billion in Q1 2024, indicating an increase of about 20.3%[119] Expenses and Investments - Research and development expenses increased from $11,903 million in Q1 2024 to $13,556 million in Q1 2025, reflecting a 13.9% rise as the company invests in AI products and services[16] - The company plans to continue investing in new businesses, products, and technologies, including acquisitions and strategic investments[9] - Stock-based compensation expense was $5,264 million in Q1 2024 and slightly increased to $5,516 million in Q1 2025[25] - The effective tax rate for Q1 2025 was 17.3%, compared to 16.4% in Q1 2024[115] Assets and Liabilities - Total assets grew from $450,256 million as of December 31, 2024, to $475,374 million as of March 31, 2025[14] - Cash and cash equivalents slightly decreased from $23,466 million as of December 31, 2024, to $23,264 million as of March 31, 2025[14] - Property and equipment, net, increased from $171.036 billion as of December 31, 2024, to $185.062 billion as of March 31, 2025[81] - Accrued expenses and other current liabilities rose from $51.228 billion as of December 31, 2024, to $58.300 billion as of March 31, 2025[82] Shareholder Returns - The company repurchased stock worth $15,139 million in Q1 2024 and $14,486 million in Q1 2025, reflecting ongoing capital return strategies[25] - In the three months ended March 31, 2025, Alphabet repurchased $15.3 billion of Class A and Class C shares[107] - Total cash dividends for Class A, Class B, and Class C shares in the three months ended March 31, 2025, were $1.2 billion, $171 million, and $1.1 billion, respectively[109] - The Board declared a quarterly cash dividend of $0.21 in April 2025, representing a 5% increase from the previous dividend of $0.20[109] Future Outlook - The company expects continued growth in revenues beyond advertising, which may positively impact margins[9] - The company anticipates fluctuations in traffic acquisition costs (TAC) and associated rates, which could affect overall margins[9] - The effective tax rate is expected to increase in future years, impacting net income[10] Legal and Regulatory Matters - In June 2017, the European Commission imposed a €2.4 billion fine on Alphabet for antitrust violations related to shopping search results[95] - In July 2018, the European Commission imposed a €4.3 billion fine for violations related to Android distribution agreements, later reduced to €4.1 billion[95] - In March 2019, the European Commission imposed a €1.5 billion fine for antitrust violations concerning AdSense for Search, which was annulled in September 2024[96] - The U.S. District Court ruled in August 2024 that Alphabet violated U.S. antitrust laws related to Search and Search advertising, with remedies pending[96] - The Australian Competition and Consumer Commission and the Japanese Fair Trade Commission have opened investigations into Alphabet's distribution practices, with a cease-and-desist order issued by the JFTC[96] - Ongoing privacy investigations and lawsuits could result in significant fines and product changes for Alphabet[100] Market Position - The United States accounted for 49% of total revenues in Q1 2025, up from 48% in Q1 2024, indicating a stable market presence[35] - Revenue backlog as of March 31, 2025, was $92.4 billion, with an expectation to recognize approximately 55% of this backlog as revenue over the next 24 months[36] - Total deferred revenue as of March 31, 2025, was $6.6 billion, up from $6.0 billion as of December 31, 2024[37] Acquisitions - The company entered into a definitive agreement to acquire Wiz for $32.0 billion in an all-cash transaction, expected to close in 2026[86] - The company has content licensing agreements with future fixed or minimum guaranteed commitments of $8.6 billion as of March 31, 2025[88]

Exhibit 99.1 Alphabet Announces First Quarter 2025 Results MOUNTAIN VIEW, Calif. – April 24, 2025 – Alphabet Inc. (NASDAQ: GOOG, GOOGL) today announced financial results for the quarter ended March 31, 2025. Sundar Pichai, CEO, said: "We're pleased with our strong Q1 results, which reflect healthy growth and momentum across the business. Underpinning this growth is our unique full stack approach to AI. This quarter was super exciting as we rolled out Gemini 2.5, our most intelligent AI model, which is achie ...

Investment strategist Shay Boloor has asserted that Alphabet (NASDAQ: GOOGL) may be one of the most disrespected stocks in today’s market, arguing that Wall Street is misjudging the firm’s position in the artificial intelligence (AI) era.Boloor’s call comes as Google faces pressure from a broader market downturn, with technoogy stocks hit hard by ongoing trade tensions. GOOGL closed the last session down 1.3% at $153.36 and is down about 20% year-to-date.GOOGL YTD stock price chart. Source: FinboldIn his an ...

Group 1 - YouTube announced new video creation tools for its Shorts feature, aimed at competing with TikTok [1] - The introduction of these tools coincides with TikTok facing potential bans in the U.S. if not sold to an American owner by April 5 [1] - New features include an updated video editor, automatic syncing of video cuts to music beats, and AI stickers [1] Group 2 - The new creator tools will be available later this spring [2] - YouTube is changing the way view counts are calculated for Shorts, now counting every play or replay without a minimum watch time requirement [2] - This new method aligns with how views are counted on TikTok and Meta's Reels, which may lead to inflated view counts [3] Group 3 - The previous view counting method required videos to be played for a certain number of seconds [3] - The change in view counting was based on feedback from creators, allowing them to better understand their content's visibility [3]

"There was an impression that the only way to compete in AI would be to raise hundreds of millions of dollars to pre-train these web-scale models that could solve every problem underneath the sun, and that was the only game in town for AI," said Shiv Rao, founder and CEO of the healthcare AI startup Abridge. "Very quickly, people figured out that actually, value moves up the stack." Megacaps like Microsoft poured billions into the first stage of the AI arms race, focusing on the infrastructure and model lay ...

Group 1 - Suzanne Frey, an executive at Alphabet, serves on The Motley Fool's board of directors [1] - Parkev Tatevosian, CFA, has positions in Alphabet and is affiliated with The Motley Fool [1] - The Motley Fool has positions in and recommends Alphabet, indicating a positive outlook on the company [1] Group 2 - Parkev Tatevosian may be compensated for promoting The Motley Fool's services, which could influence his opinions [1] - The Motley Fool has a disclosure policy that outlines potential conflicts of interest [1]

Core Insights - The race between China and the U.S. to achieve grid-scale nuclear fusion energy is intensifying, with China investing significantly more and accelerating project development [1][7][8] - Nuclear fusion is considered the "holy grail" of clean energy, offering four times more energy per kilogram of fuel than traditional nuclear fission and four million times more than coal, with a projected market value of at least $1 trillion by 2050 [2][3] Investment Landscape - Private investment in U.S. fusion startups has surged to over $8 billion, a significant increase from $1.2 billion in 2021, with 25 out of 40 member companies of the Fusion Industry Association based in the U.S. [5][8] - China is reportedly investing $1.5 billion annually in fusion research, while U.S. federal funding has averaged about $800 million annually [11][12] Technological Developments - The U.S. achieved a historic first fusion ignition in 2022 at the Lawrence Livermore National Ignition Facility, producing net positive energy [5] - China is rapidly constructing new fusion projects, including a massive facility that is expected to be twice the size of the U.S. National Ignition Facility [13][14] Research and Development - China has surpassed the U.S. in the number of fusion patents and has ten times the number of doctorates in fusion science and engineering [19] - U.S. fusion projects have largely focused on upgrading existing machines, while China is attracting talent with new projects [18][20] Supply Chain and Material Development - China is investing ten times more than the U.S. in advanced material development necessary for fusion projects, aiming to dominate the supply chain for critical materials [21] - The efficient supply chain in China has enabled rapid advancements, with companies like Energy Singularity achieving significant milestones in a short time frame [21] Future Outlook - Helion aims to deliver fusion power to the grid by 2028, while Commonwealth Fusion Systems plans to bring its first fusion power plant online in the early 2030s [22] - The ultimate goal is to establish a mature fusion industry capable of producing energy for global use, including powering AI centers [22]

Core Viewpoint - Google experienced its worst performance in nearly three years, with a stock price drop of approximately 16% in February, despite a modest earnings per share (EPS) beat and overall revenues falling below consensus estimates [1][2] Financial Performance - Google Cloud revenue did not meet expectations, and the company announced capital expenditures (CapEx) of $75 billion for 2025, significantly higher than the estimated $59 billion [2] - As of the latest update, GOOGL shares were priced at $171.81, reflecting a 9.24% decline since the beginning of the year [2] Analyst Reactions - Following the earnings call, many Wall Street firms revised their outlook on Google stock, primarily lowering price targets, yet most analysts maintained 'Buy' or 'Overweight' ratings [4] - Morgan Stanley and JPMorgan set 12-month price forecasts of $210 and $220, indicating potential surges of 22.22% and 28.04%, respectively [5] - Bank of America analyst Justin Post raised his price target from $210 to $225, citing healthy search engine traffic and revenue growth, unaffected by rising competition from AI platforms [6] Valuation Metrics - GOOGL is currently trading at a trailing price to earnings (PE) of 21.17 and a forward PE of 19, making it the most affordable stock among the Magnificent 7, with Meta following at a forward PE of 26.41 [8] - Despite concerns over high capital expenditures, analysts still view GOOGL as having the most attractive valuation among the Magnificent 7, with expectations to outperform the S&P 500 through 2025 [9]

Core Insights - The autonomous vehicle industry is rapidly advancing, with Waymo's robotaxis achieving significant milestones, including 5 million rides and over 25 million miles driven, and plans for expansion into new cities by 2025 [1] - Mobileye Global is a key player in the autonomous driving sector, providing advanced driver assistance systems (ADAS) and a comprehensive Mobileye Drive platform [2] - Lyft plans to introduce Mobileye-powered robotaxis in Dallas by 2026, with intentions to scale across multiple cities [4] - Luminar Technologies advocates for LiDAR technology in autonomous vehicles, despite facing cash burn and competition from Mobileye's imaging radar [7][8] - Aptiv, through its joint venture Motional, is testing Level 4 autonomous driving technology and has secured significant new business bookings [12][13] Group 1: Industry Developments - The age of autonomous vehicles is approaching, with increasing adoption of robotaxis and regulatory support from the new administration [1] - Waymo's success has revived interest in the robotaxi market, attracting potential partners and operators [5] Group 2: Key Companies - Mobileye Global is recognized for its advanced driver assistance systems and the Mobileye Drive platform, which utilizes a combination of cameras and AI technology [2][3] - Luminar Technologies emphasizes the advantages of its LiDAR technology, claiming superior range and precision compared to camera-based systems [8][9] - Aptiv's partnership with Hyundai in the Motional venture is focused on developing Level 4 autonomous driving capabilities, with significant operational milestones achieved [11][12]