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Alphabet’s Strong Q3 Performance
Alphabet (NASDAQ: GOOG, GOOGL) reported record revenue of $102.34 billion for Q3 2024 on October 29, marking its first quarter to surpass $100 billion. Google Advertising generated $74.18 billion, representing 72% of total revenue and a 12.6% year-over-year increase. Google Search maintained a dominant 90% market share of global internet searches, while YouTube Ads contributed $8.92 billion, up 15% from the previous year.
Growth in Google Cloud
Google Cloud revenue reached $15.15 billion, up 33.5% year-over-year, with a backlog growth of 46%, totaling $155 billion. Alphabet plans to increase its AI infrastructure spending from $85 billion to an estimated $91-93 billion, reinforcing the company’s commitment to expanding its cloud capabilities in an increasingly AI-focused market.
Market Position and Future Outlook
Alphabet’s strong earnings performance and strategic investments in AI and cloud computing bolster its competitive position, despite trailing behind Amazon and Microsoft in cloud market share (13% vs. 30% and 20%, respectively). The company’s forward P/E ratio of 27.3 remains attractive compared to its peers, positioning Alphabet for potential growth in the tech sector.
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