The alphabet was very much awaited by antimonopolistic decision favorable to the company.
The technical manager should keep his highest place in search of the Internet and continue to create many ads.
The alphabet has several other growth methods that only begin, including cloud computing and AI.
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Alphabet(Nasdaq: goog)(Nasdaq: googl) Despite the announcement of strong financial results, the market was encouraged by the market. The reason for the poor results of the company was its antitrust case, one of the most higher levels per year. The market was concerned about the worst results of these legal troubles and took a bit of the price of the alphabet. However, the technology giant recently won a big victory on that front, so its share price has increased and has achieved the highest place of all time. Let’s explore these latest changes and find out if it is still worth buying an alphabet.
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The federal judge has already ruled that the alphabet has an online search monopoly. The technical manager waited for his sentence. Regulators wanted to break down a monopoly, forcing the alphabet to abandon the world’s most popular browser in Google Chrome. This would have meant an important source of revenue, advertising of the most important technology company, as Alfabet uses a browser to maintain its dominance in search (this is the default Chrome engine), to collect data that will help direct advertising campaigns and more.
But the alphabet avoided that fate. Judge Amit Mehta ruled that the company could keep the chrome. However, the technology manager does not leave it completely untouched. The judge also ruled that the alphabet could no longer enter into “exclusive distribution contracts” for which it is a default engine of third -party creators, such as such as such as An appleSafari. This solution includes not only Google as a search engine, but also Chrome, Gemini and other alphabetical products.
In general, however, it was a favorable solution for the alphabet, so the company’s shares increased after the announcement. For shares with a market limit above 2 trillions of USD, almost 10% increase in one day is huge. However, it is not too late to invest in the alphabet. That’s why.
The alphabet should remain a dominant force in search of the nearest future. Now she has been able to eliminate two major threats due to its huge advantage of this market: the potential loss of its Chrome browser and the rise of Talking programs. When it comes to the second threat, the alphabet is adapted by adding AI review to its search engine. Recently, the company has revealed that AI reviews have more than 2 billion active users and encourage 10% more search scope of the queries they apply.
In other words, Chatgpt is not a Google killer who thought it would be. Google Search Business as well as other sources of advertising, including YouTube, is still generating billions of advenths. In the second quarter, the alphabet reported the $ 71.3 billion advertising income, which increased by 10.4%compared to the Ago period. Even more good news: Alfabet cloud computing business is growing much faster. The revenue of the second -period clouds was $ 13.6 billion, 31.7% higher than the year.
The Alfabet cloud business also receives an increase in AI due to AI related services offered by the company. At the end of the second quarter, the alphabet doubled the number of $ 250 million transactions for its AI products compared to the same period last year. The company has also signed more transactions worth over $ 1 billion, nor did it all 2024 fiscal years. In other words, the company’s business is booming and this is just the beginning. Both the clouds and the AI industries are still quite early in their growth trajectories.
This should give the alphabet the main long -term breeze. The company should be useful for others. Thanks to YouTube, it occupies a strong position in the broadcast and has one of the leading autonomous vehicles of Niche companies. Self -driving cars are not the norm yet, but in the long run they can become widespread, and this should be useful for the alphabet. Thus, while search and advertising remains the greatest sources of income – and they are now safe due to the results of its antitrust case, the alphabet is the leader of other markets with huge growth potential.
The shares may have just achieved the highest place of all time, but investors who have been holding it for a long time should still expect a strong return over the next decade.
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Prosper Junior Bakiny has no position in any of the above shares. The Motley fool is a position and recommends the alphabet and Apple. The Motley fool has a disclosure policy.
Alphabet Stock reaches the high of all time, as the antimonopolic board clears the way more AI growth initially The Motley Fool has announced Motley Fool
