Google's quarterly results paint a picture of an internet powerhouse getting stronger in AI age

"Google's latest quarterly report provided further evidence that its internet empire is withstanding an artificial intelligence shakeup that's turning into another potential boon for the company. The numbers released Wednesday marked Google's third consecutive quarter of digital ad growth of more than 10% from the previous year, while also posting more than 30% sales growth in its division that powers data centers for AI services."

"Alphabet's fourth-quarter profit rose 30% from the prior year to $34.5 billion, or $2.82 per share, while revenue climbed 18% to $113.8 billion. The collective momentum of Google's main business in search and advertising and the still-nascent AI field indicates a company born during the late 1990s internet boom is becoming even stronger during another technology phenomenon nearly 30 years later."

"Google's successful evolution has helped drive up Alphabet's stock price nearly 60% in the past five months, giving it a $4 trillion market value. Even so, some investors are still skeptical whether Google will be able to sustain enough growth to justify the more than $300 billion that Alphabet will have spent from 2024 through the end of this year on expanding the computing capacity needed for AI features."

Alphabet reported strong fourth-quarter results, with profit rising 30% to $34.5 billion ($2.82 per share) and revenue increasing 18% to $113.8 billion. Digital advertising grew for a third consecutive quarter by more than 10% year-over-year, while the division that supports AI data centers posted sales growth exceeding 30%. The combination of search, advertising, and nascent AI capabilities has driven Alphabet's stock up nearly 60% in five months and a $4 trillion market value. Some investors question whether future growth will justify more than $300 billion planned spending on computing capacity. Apple agreed to integrate Google's Gemini into an upgrade for Siri, and Google is embedding Gemini across its products.

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