The latest quarterly results from Alphabet in the first quarter of 2025 significantly surpassed investor expectations, leading to a positive reaction on Wall Street.
Financial Highlights
- Revenue: Alphabet reported a revenue of $90.23 billion, which is 12% higher than the previous year and exceeded analyst expectations.
- Profit: Profit rose by 46% to $34.54 billion, and earnings per share (EPS) were $2.81, which was about 40% above projections.
- Operating Profit and Margin: Operating profit increased by 20% to $30.6 billion, and the operating margin reached 33.9%.
Impact on Investors
- Stock Price Reaction: Alphabet’s stock rose significantly in after-hours trading.
- Adjustment of Price Targets: Analysts have significantly raised their price targets for Alphabet.
- Growth in Strategic Areas: The cloud business grew by 28%, a key driver of growth.
- Share Buyback Program: Alphabet announced a $70 billion share buyback program.
Implications for Future Market Movements
- Growth Slowdown: A slight slowdown in revenue growth is evident.
- Investment Strategies: Positive figures could promote investments in technology companies like Alphabet.
Overall, Alphabet’s quarterly results offer interesting investment opportunities for both institutional and private investors.