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Alphabet Soars 5.25% on AI-Driven Earnings Surge

Mover TrackerFriday, Apr 25, 2025 4:08 am ET

1min read

On April 25, 2025, Alphabet's stock surged by 5.25% in pre-market trading, reflecting a strong start to the day's trading session.

Alphabet's first-quarter earnings for 2025 showcased impressive results, with revenue reaching $902.3 billion, marking a 12% year-over-year increase. The company's net income soared to $345.4 billion, a 46% jump from the previous year. This performance exceeded market expectations, driven by robust growth in both advertising and cloud services.

CEO Sundar Pichai highlighted the significant role of AI in enhancing the company's operations. He noted that over 30% of the code submitted internally is now assisted by AI, up from 25% just a few months ago. This integration of AI has not only improved efficiency but also contributed to the strong financial performance.

The company's advertising business, which includes search, YouTube, and network alliances, remains a cornerstone of its revenue, contributing over 70% of the total. The cloud business, another key area, saw a 28% year-over-year increase in revenue, reaching $122.6 billion. This growth is attributed to the increasing demand for AI-driven cloud solutions.

Alphabet's strategic investments in AI and cloud infrastructure are expected to continue driving growth. The company plans to spend $750 billion in 2025 on capital expenditures, focusing on AI and cloud infrastructure to maintain its competitive edge.

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