Alphabet Inc., the parent company of Google, has seen its stock rise over 480% in the last decade, driven by robust growth in advertising and cloud services. Despite a strong historical revenue and earnings growth, analysts predict a slowdown in growth rates moving forward. The emergence of new AI technologies and competition from platforms like TikTok and The Trade Desk poses serious threats. Compounded by significant antitrust scrutiny from U.S. regulators, Alphabet may struggle to maintain its market position—leading some analysts to liken its potential future to IBM's slower growth trajectory.
Alphabet's stock has surged 480% in the past decade, but the company now faces growth challenges from AI platforms like ChatGPT and competition in the cloud.
With the revenue CAGR at 18% from 2014-2024 dropping to an expected 11% from 2024-2027, Alphabet's growth is slowing amidst evolving market dynamics.
Intense regulatory scrutiny could limit Google's ability to compete effectively, particularly if proposed divestments impact its search and advertising dominance.
Without decisive actions to address emerging challenges, Alphabet risks becoming a slower-growth tech company similar to IBM in the next decade.
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