Google’s Earnings Were So Good, They Made Wall Street Forget We’re in a Trade War

By Stocks News   |   2 weeks ago   |   Stock Market News
Google’s Earnings Were So Good, They Made Wall Street Forget We’re in a Trade War

Isn’t it funny how fast Wall Street’s mood swings? One minute we’re in full “sell everything, recession incoming, the sky is falling” mode… and the next, a half-baked rumor that Trump might maybe make a deal with China catapults stocks toward the sky.

Google’s Earnings

And here’s what’s hilarious… China literally came out and said, “Yeah, that’s not happening.” But the market didn’t care. It took one look at the rumor, said, “Good enough,” and lit the fuse. By the time Alphabet reported earnings, the Nasdaq had already put together three straight days of 2% gains… the first time that’s happened since 2001. That’s not a typo. 2001. Back when people still thought AOL was the internet. So when Google’s numbers hit, it was like dumping gasoline on a rally that was already blazing.

But let’s not take anything away from Alphabet… their first-quarter earnings were amazing. Revenue hit $90.2 billion, comfortably ahead of expectations. Net income increased to $34.5 billion, and earnings per share jumped to $2.81. That’s nearly 50% profit growth compared to last year, and about 40% more than analysts had penciled in. The company’s cash printer (aka Google Search) brought in over $50 billion, while Cloud revenue ticked in at $12.26 billion… basically right on the nose.

Google’s Earnings

And to really seal the deal, Google did the two things Wall Street loves most: it raised its dividend by 5% and announced a massive $70 billion stock buyback.

Of course, investors lost their pants. Shares jumped more than 5% after hours. Suddenly, all the doom-and-gloom surrounding Big Tech seemed to vanish. If you recall, just a few days earlier… analysts were out here saying Google was “impossible to underwrite” thanks to tariff uncertainty, antitrust issues, regulatory overhangs, and AI disruption risk. But now, suddenly Google is a national treasure again.

Google’s Earnings

To be clear, nothing actually changed in the macro picture. Trump’s tariffs are still hanging over the market like that annoying fly in the kitchen. Google is still facing a federal judge who says they run an illegal ad monopoly and might have to spin off Chrome. And yes, ad spend from Chinese companies like Temu and Shein has dropped thanks to Trump’s “Liberation Day” import crackdown.

But none of that mattered. Because Google doesn’t rely too heavily on Chinese ad dollars… only 4 to 5% of its revenue comes from that stream, compared to Meta’s 8%. That relative insulation gave it just enough wiggle room to look like the adult in the room when the rest of the Magnificent Seven were still freaking out.

Google’s Earnings

So yeah, Google got lucky. It timed its earnings perfectly. The narrative shifted just in time… from “sell everything” to “wait, maybe we overreacted.” And to Google’s credit, they had the numbers to back it up. Right now, they’re playing it like a company that never stopped believing in its own hype… even if half of Washington wants to break it up.

PS: The headlines are full of panic… inflation’s too high, the Fed’s asleep at the wheel, and Trump never fails to kill any market momentum with more tariffs. On the surface, it looks like the market’s barely breathing.

But underneath all that noise?

We’re seeing some of the fastest stock moves in years… especially in the small-cap space, where low float and high tension can trigger a 100% pop before lunch. Some are up 200% in under 24 hours… and nobody on CNBC is talking about them.

Except us.

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Stock.News has positions in Google and Meta.

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