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Alphabet (GOOG) (GOOGL) will report its first-quarter results on April 29, amid solid operating momentum but rising cost pressures. The tech giant’s core businesses, including Search and YouTube, continue to deliver steady growth, driven by higher engagement. At the same time, the cloud segment is witnessing solid artificial intelligence (AI)-driven demand.
Overall, Alphabet’s dominance in digital advertising and growing share in enterprise cloud services are likely to drive its top line. However, its increased investments in AI will likely hurt margins.