Alphabet to report Q1 earnings results after the bell

Core Insights - Alphabet, the parent company of Google and YouTube, is facing challenges in the artificial intelligence sector due to increasing competition and regulatory scrutiny, with its shares dropping over 17% in 2025 [2] - Analysts expect Alphabet to report a 10% year-over-year revenue growth for the first quarter, driven by AI advancements, significant acquisitions, and cost-cutting measures [3] AI Developments - Google launched Gemini 2.5 and Gemma 3, its latest AI models, in March, following competition from DeepSeek's R1 model, which claimed lower training costs [4] - Google AI chief Demis Hassabis expressed confidence in Google's AI technology, stating the company has the necessary resources to maintain its leadership [5] Strategic Partnerships and Acquisitions - Nvidia's CEO praised Google for its computing capabilities and announced a partnership with Google's Gemini products [6] - Alphabet made its largest acquisition to date by agreeing to buy Wiz for $32 billion, aiming to enhance its cloud security offerings [8] Regulatory Challenges - Google is facing multiple regulatory and legal challenges, including a federal judge ruling that the company holds illegal monopolies in online advertising [9] - The company reached a settlement with its employee union regarding antitrust litigation discussions, marking a significant victory for its staff [10] Financial Performance - Alphabet's revenue for the quarter is reported at $89.2 billion, with earnings per share at $2.02 [9] - YouTube advertising revenue reached $8.97 billion, while Google Cloud revenue was reported at $12.27 billion [9]