"It wasn't so long ago that people were really concerned about Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The company was embroiled in lawsuits filed by the Justice Department alleging unfair practices, and ChatGPT posed a direct threat to Google's dominant search business. But Alphabet shook those fears off. The legal threats are gone. Google's AI-powered search is proving to be popular, and Alphabet is having a fabulous year. It's the second-best performing member of the " Magnificent Seven" cohort of stocks, with a 48% gain that trails only Nvidia."
"Alphabet announced its first-ever quarter of posting $100 billion in revenue in its third-quarter results on Oct. 29. And while the company got a lot of attention for its successes with Google Cloud and its planned spending on artificial intelligence (AI) infrastructure, I was most struck by Alphabet's results as an advertising cash-printing machine."
"Make no mistake: Even in an AI-driven world, advertising is the heartbeat that drives the company. Google Advertising revenue was $74.18 billion for the quarter, totaling 72% of Alphabet's overall revenue of $102.34 billion. Google Advertising increased 12.6% on a year-over-year basis."
Alphabet posted its first-ever quarter with $100 billion in revenue and continues to derive the bulk of its income from advertising. Google Advertising produced $74.18 billion, representing 72% of total revenue of $102.34 billion, and grew 12.6% year over year. Google Search advertising showed strong growth and maintained roughly 90% global search market share despite pressure from generative AI chatbots and social platforms. AI-powered search adoption and Google Cloud investments attracted attention, but advertising remains the primary cash generator, supporting robust stock performance and overall company momentum.
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