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Google (Googl) The parent alphabet will report to the first quarter of 2025 on Thursday after the bell in which the bell could be a key test for NASDAQ, given the heavy-heavy weight on the index.
So far, the company has fallen around 16% so far, so that investors will be on Thursday for Thursday to accurately measure Google’s confident management, and in the middle of encounter in the cloud related to antitrust cases.
The shares were slightly on Thursday morning trading, about 1.3%.
Google is expected to report revenues from Q1 in the amount of 89.2 billion in the amount of 11% (increases of 11%) and earnings per share of $ 2.02 (7%). Despite the couples of the company in stock last year, the Wall Street analysts remain optimistic in terms of Google’s future. Consensus? Its basic business bases are strong.
However, long-lasting insecurities were led by some large companies that lower price targets before calling on Thursday.
Best analysts, like those in TD Cowen (TD), UBS (UBS), and scotiabank (BNS), they adjusted their 12-month-in-price targets for the alphabet. TD Cowen reduced his goal from $ 210 to $ 195, while UBS dropped from $ 209 to $ 173, and Scotiabank dropped from 232 to $ 200. But despite these cautious views, all three companies maintain a “buy” grade in stock.
RBC Capital (Ry) Analyst Brad Erickson said the institutional investors reduced their expectations: “We believe that the buying party expects (2% -3%) of Miss, ie 9% Sales.”
Google deals with many firears that analysts take into account: growing legal risks, trade war and tariff uncertainty and increasing competition in computing AI and Cloud.
For investors, the first quarter financing report could be the moment of truth: opportunity to reset expectation and return on the long-term potential of 1.9 trillion silicone giant giant tiles.
Legal risks remain great concerns
Google has recently received a lot of titles while stretching their way through various antitrust lawsuits.
The browser’s giant was Back to court this weekRelated to the verdict found by the company has an illegal monopoly in network search – partly paying web browsers and smartphone manufacturers to contain their browser. And the drink told the judge that had a solution to lift an eyebrow: forcing the company to Sell your popular chrome search engine.
Google is facing other prefabricated issues that have put the company in a particularly vulnerable position.
In a separate antitrust case, the Federal judge has ruled that the company had Illegally held a monopoly In some Internet advertising technologies, which could result in regulatory fines or structural changes as Google’s business business operates – and maybe even break up. I Japan FTC recently sent a company to cease and disist After it was said that Google’s search practices are monopolistic.
On Thursday, analysts will look carefully for any mention of these legal challenges and for what the company’s strategy works to deal with them beyond what the company has already said – that they will complain.
Cloud growth potential and AI – but when?
One key feature of Google’s earnings will probably be as the company integrated and improved its and bids, especially among increased competition in the Empire. Investors will look at how Gemini AI model is integrated into Google search, YouTube and Google Cloud – and in the way that will start generating significant income.
Jeffries Analysts said Google Cloud “is well located in favor of GMDi and progress” because they are also priced for the company a little climax. Analysts expect that Q1 Google input in the cloud nearly 12 billion dollars, increased in 25% compared to annual and slightly below the expectations of the street ($ 12.3 billion) and the growth rate of Q4 (30%).
However, Google Cloud still plays achievement for rivals such as Amazon Web Services (Amzn) and Microsoft Azure (MSFT).
Google has positioned Google Cloud as ai-first platform, so as many companies as many companies adopt the technology, Google hopes to set your software as providers. If the earnings of this quarter show significant growth in the cloud, it could signal the breakthrough. Analysts will be carefully observed by any signs that this strategy began to pay off.
And analysts will also watch competition and search which is JPMorgan Chase (Jpm) Analyst Doug Anmuth said in the report, “the front and center remains, given the rapidly growing scale of the OpenAige and Google-measured pace in interfering with their own search ecosystem.”
How long can advertising remain the backbone?
Google’s advertising business remains the largest component of the company’s revenue, so investors will consider these numbers to illuminate the current situation in the digital advertising market.
YouTube and Google search, the company’s revenue generations are expected to show growth. Analysts predict that ad revenue will increase almost 11% to almost $ 8 billion. But the company has high hopes for expanding in the monetization of YouTube short houses. If it becomes a significant income stream, it could help compensate for any potential slowdown in the traditional ad revenue.
Analysts remain careful. Legal challenges, including a recent judgment in the Federal Court who discovered that Google is guilty of illegally dominated on the market on ad servers and exchanges, could have great implications.
2025-04-24 13:58:00
