"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."
"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. Image source: Alphabet. Alphabet's advertising numbers Make no mistake: Even in an AI-driven world, advertising is the heartbeat that drives the company."
Alphabet posted its first-ever quarter with $100 billion in revenue, fueled primarily by advertising. Google Advertising generated $74.18 billion, representing 72% of total revenue and rising 12.6% year over year. Google Search maintained dominant market share amid competition from generative AI chatbots and social platforms. AI-powered search features have proved popular and helped revive investor confidence after prior legal and competitive concerns. Google Cloud and AI infrastructure investment attracted attention, but advertising remains the principal cash generator supporting overall financial strength and growth momentum.
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