"Alphabet is the parent company of Google, along with several other brands, like YouTube, the Android operating system, and Waymo. It's a fairly wide business, but when you boil it down, most of Alphabet's revenue comes from advertising. In Q3 2025, Alphabet's ad revenue totaled $74.2 billion, with total revenue coming in at $102.3 billion. When the economy and the consumer are fairly strong, advertising is a great business to be in."
"Microsoft's most important segments are those devoted to business and cloud computing, and these two segments accounted for $33 billion and $30.9 billion, respectively, of Microsoft's $77.7 billion in revenue in Q1 of fiscal year 2026 (ended Sept. 30). These units may not see as strong growth if we enter a recession, but they are still more resilient than Alphabet's."
Both Microsoft and Alphabet have market capitalizations of at least $3 trillion, with Alphabet recently approaching $4 trillion after a surge. Alphabet's business includes Google, YouTube, Android and Waymo, but most revenue derives from advertising, which generated $74.2 billion in Q3 2025 and contributed to $102.3 billion in total revenue. Advertising revenue performs well in strong economic conditions but can decline quickly when companies anticipate a recession. Microsoft operates across productivity, cloud, gaming, and hardware; its business and cloud segments produced $33 billion and $30.9 billion of $77.7 billion in Q1 fiscal 2026 revenue, offering steadier, more recession-resilient growth compared with Alphabet.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]