"On Wednesday, Alphabet, Google's parent company, reported its first-ever $100 billion quarter. Revenue rose 16 percent to $102.3 billion. Net income jumped 33 percent to $34.98 billion. Those are not the numbers of a company whose main business is being disrupted. It's more like the numbers of a company that's quietly figuring out how to change with the behavior of its users."
"Google Search and YouTube each grew at a double-digit pace. "Google Search & other" revenue climbed 15 percent to $56.6 billion. YouTube ads rose 15 percent to $10.3 billion. Combined, Google's advertising machine brought in more than $74 billion for the quarter. Not only that, but its cloud business grew by 35 percent over the previous year. That leads to the most interesting part of this story, which is the part about how Google is spending all that money."
"But for most of the past two years, the biggest story about Google has been that artificial intelligence would, inevitably, make search obsolete. People would stop "Googling" things because AI chatbots could just tell them the answers. Search-the company's $200-billion-a-year cash cow-was supposed to be doomed. On the one hand, the idea that people would no longer type queries into Google's search box and then click on the blue links that show up on results pages was a doomsday scenario."
Google's core search and advertising businesses continue to grow even as AI chatbots raised concerns that search might become obsolete. Widespread predictions that people would stop "Googling" did not materialize into business collapse. Alphabet reported its first $100 billion quarter, with revenue up 16% to $102.3 billion and net income up 33% to $34.98 billion. Google Search and YouTube grew at double-digit rates; "Google Search & other" revenue rose 15% to $56.6 billion and YouTube ads reached $10.3 billion. Advertising revenue exceeded $74 billion and cloud revenue grew 35%, enabling higher capital expenditures.
Read at Inc
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