President Donald Trump’s business policies will have a negative impact on Google Parent AlphabetThe main advertising business, a company executive said Thursday.
Alphabet, who reported stronger income than expected in his first quarter of the year, faces an online advertisements that is on the edge due to the tell us about how Trump’s tariffs will affect the economy and commercial spending. Although the word “rate” was never mentioned in the call to the Alphabet investor on Thursday, “Macro” was mentioned several times when investors splashed the company’s executives with questions about economic impacts forward in the midst of new commercial policies.
Several strategists increased their probabilities of a recession after Trump on April 2 announced tariffs for imports of goods to the United States of diseases of countries. On April 9, Trump reduced tariffs in many 10% countries for three months.
The alphabet will probably be affected by the materials necessary for the technical infrastructure, such as the data centers that it uses to boost the artificial intelligence efforts. You could also see the second -hand effects on the advertising setback of budget limitations.
In Thursday’s investor call, Alphabet executives said it is too early to say how much it will be affected, but they said that would like to be winds against their advertising business, particularly from the Asia region: the Pacific of Worldd.
“Any of the other factors you are seeing in advertising of verticals or regions or categories that could be showing signs of weakness?” Brian Nowak or Morgan Stanley asked.
“We would like to speculate on possible impacts beyond pointing out that changes in minimis exemption will obviously cause a slight wind against our advertisement business in 2025, mainly from APAC retail,” said Philipp Schindlerer“ Google business director.
Earlier this month, Trump signed an executive order that will impose a duty that represents 30% of the value or $ 25 per article in shipments worth less than $ 800 entering the US. UU., As of May 2. The duty jumps to $ 50 by Ital Thuis 1. 1930 had allowed such packages to import tax free. The change brought logistics challenges that resulted in a delay in the implementation of politics.
The retail trade, which Schindler said that he was among the main taxpayers to his advertising growth in the first quarter, rephes at least 21% of Google’s advertising income, according to Oppenheimer & Co. of expenses.
“Obviously we are not immune to the macro environment,” Schindler added.
“Are they starting to react to some of the macro nervousness that everyone was experiencing?” Ross Sandler de Barclays asked about brands advertised on YouTube.
Schindler said: “It is still too early in the second quarter to have a more specific vision of things.” He added that Google has “a lot of experience in the management of uncertain times.”
“If the weak macro and we see more a slowdown, would you expect to find additional opportunities to reduce costs?” Doug Anmuth asked by JPMorgan.
Alphabet’s financial director, Anat Ashkenazi, said the company is still looking to spend $ 75 billion on capital expenses in 2025, but stipulated “the investment level can fluctuate from quarter to quarter due to the moment of deliveries at the time of deliveries.”
The expenses will be used for technical infrastructure, mainly for servers, followed by data and networks, executives said in February.
The company is still focused on “promoting efficiency and productivity through the organization,” Ashkenazi said in Thursday’s call, pointing to his comments from 2024, where he said that the organization can “always establish the cost, encourage more.”
Alphabet’s CEO, Slándar Pichai, also mentioned “efficiency” as a means to try to keep a company elegant enough for possible macro storms.
“If the macro environment changed and becomes more descending, how should investors think that they must do this year, almost fixed in nature, compared to where there could be more flexibility?” Eric Sheridan from Goldman Sachs asked.
Pichai replied that the company plans to continue consolidating equipment and reducing costs in other places, which said “should help us have a more resistant organization, regardless of macroconic conditions.”
– CNBCS Jordan Novet contributed to this report.
Look: Google gains: what investors are looking for