Alphabet answered Wall Street's call and reported its best earnings since 2009. Google's parent company earned $26 million in ad revenue in the first quarter, up from $21 million this time last year. It also revealed a $3 billion stake in the ride-hailing company Uber, in addition to other investments. Alphabet was the first major tech company to report earnings since mounting concern over data privacy reached a peak after Facebook's Cambridge Analytica scandal. In a call with investors on Monday, the Google CEO Sundar Pichai said that potential new privacy regulations won't impact the company because it requires "very limited information" from its users to be able to generate revenue from its ad business. "There is a lot of sound and fury without much actually happening that's going to change the earnings power of these companies and the valuation" said Jason Ware, the chief investment officer and chief economist at Albion Financial Group. But it's not all sunshine and rainbows for Alphabet. The stock was down more than 2 percent on Tuesday morning, signaling that investors may be cooling on their beloved FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google). Scott Kessler, the director of equity research and an analyst at CFRA, said investors should remember that Google has $100 billion in cash at its disposal. The company may give out buy-backs, or use it to make key investments, said Kessler. Alphabet reported revenue of more than $31 billion and earnings per share of $13.33. Its "other bets" category saw revenue of $150 million. For full interview, [click here](https://cheddar.com/videos/alphabet-answers-wall-streets-call).

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More