"During Q3 2025 (ended Sept. 30), Alphabet brought in $74 billion in digital ad revenue (73% of its total), up 13% year over year. This makes it the largest business in this market. The industry is expected to grow at a 15% compound annual rate through the rest of this decade. This provides a major tailwind for Alphabet to keep up its expansion, pushing up revenue and profits along the way. This should drive the stock higher."
"Alphabet is also figuring out how to generate revenue from new avenues in a world of more artificial intelligence queries. Its Gemini app has 650 million monthly active users . And Alphabet plans to display ads to free users in 2026. Monetization here can be valuable for the company. And this demonstrates how Alphabet is adapting to changes in the search universe, operating from a position of strength."
Alphabet delivered a 723% gain over the trailing 10-year period, significantly outperforming the overall market. In Q3 2025, Alphabet recorded $74 billion in digital ad revenue, comprising 73% of total revenue and rising 13% year over year. The digital-advertising industry is expected to grow at a 15% compound annual rate through the rest of the decade, providing a strong tailwind for continued revenue and profit expansion. Alphabet’s Gemini app has 650 million monthly active users, and plans to show ads to free users in 2026 aim to monetize AI-driven queries. Ad-market leadership and AI monetization support long-term stock growth.
Read at The Motley Fool
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