Alphabet is waiting for “light wind” for ADS Business in 2025, say Execs

President Donald Trump’s trade policy will have a negative impact on parents AlphabetThe main advertising business, said the head of the company on Thursday.

The alphabet that report In the first quarter of the year, it is expected in the first quarter of the year, facing the online advertising market, which is on the verge due to the concern how Trump’s tariffs will affect the economy and business expenditures. While the word “tariff” was never mentioned on the call of the Alphabet investor on Thursday, it was mentioned several times when investors were first executives of companies with questions about economic consequences forward against the background of new trade policy.

Several strategists have increased the chances of recession after Trump announced tariffs for imports of goods from dozens of countries on April 2. April 9 Trump Lowered tariffs In many countries up to 10% for three months.

The alphabet will probably affect the materials required for technical infrastructure as the data centers that it uses for electricity efforts in artificial intelligence. It can also see the impact in the elderly on advertising with budget restrictions.

In the investor section on Thursday, the alphabet executives stated that it would be early to tell how much it would be affected, but they said they would probably be going to his advertising business, especially from the Asia -Tzakhakan region, or APAC.

“Any other factors you see in advertising verticals, regions or categories that can show any signs of weakness?” asked Brian Novak from Morgan Stanley.

‘We wouldn’t like to reflect on potential consequences except that changes in liberation from minimum are obviously. Google Chief Business Director.

Earlier this month Trump signed Executive order This will impose a duty that represents 30% of the cost or $ 25 per shipment worth less than $ 800, which are part of the US, starting on May 2. The duty jumps up to $ 50 per item on June 1. In February Trump Trump unbutton the gap Which since the 1930s has allowed to import such packages without duties. The change caused logistics problems that led to the delay in policy implementation.

Retail, which Schindler Said was among the top contributors to its advertising Growth in the first quarter, represents at 21% of Google Ad Revenue, According to Estimates by oppenheimer & Co. Chinese Discount E-Commerce Apps Temu and Shein, what Big Advertisers in the US in Recent Years, are of notable, and Ago Already distracted back to expenses.

“We are obviously not insured against the macro -entity,” Schindler added.

“Are they starting to respond to some of these macro -dricians we all experienced?” Ross Sandler asked from Barclays about the brands that advertise on YouTube.

Schindler said “early in the second quarter to have a more specific view of things.” He added that Google “a lot of experience in uncertain time”.

“If macro is weak and we see more slowdown, you expect you to find additional opportunities to cut more?” asked the Anmut Arc from JPMorgan.

Alphabet Financial Director Anat Ashkenazi said the company is still looking at costs 75 billion dollars The capital costs in 2025, but provides for “investment levels can fluctuate from a quarter from the influence of changes in terms of supplies and construction schedules.”

The costs will go to the technical infrastructure, first of all for the servers, followed by data centers and networks, the executives said In February.

The company is still focused on “management and performance efficiency throughout the organization,” Ashkenazi said on Thursday, pointing to her 2024 CommentsWhere she said that the organization could “always push a little further” when it comes to reducing the costs, which included reduction to quantity and real estate.

The CEO Alphabet Sundar Pichai also mentioned “efficiency” as a means of attempting to maintain a low-fat macro brown company.

“When the Macro-Oserodde has changed and became more changing as investors should think about the investments that are needed this year, virtually recorded in nature, compared to where there may be more flexibility?” asked Eric Sheridan from Goldman Sachs.

Pichi replied that the company plans to continue consolidation of the teams and reduce the costs elsewhere, which, he said, “should help us to have a more resilient organization, regardless of macroeconomic conditions.”

– Jordan Novo CNBC contributed to this report.

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