Alphabet's Comeback: The Hidden Engines Powering Google

Core Insights - Alphabet has shown a recovery of over 23% from its 52-week low in April, currently down just 8% year-to-date, indicating a positive trend compared to its peers in the tech sector [1][2] - The company is diversifying beyond its traditional search engine business, focusing on high-growth areas such as cloud services and digital advertising [2] Google Services: Revenue Engine - Google Services generated $84.1 billion in revenue in Q4 2024, a 10% year-over-year increase, with advertising revenue contributing $72.5 billion to the total [4] - This segment includes various products like Google Search, YouTube, and productivity tools, which are critical for Alphabet's overall revenue [3][4] Google Cloud: Growth Potential - Google Cloud generated $12.26 billion in revenue in Q1 2025, marking a 28% year-over-year increase, with operating income surging 142% to $2.18 billion [7] - The company is investing $75 billion to expand its data infrastructure, aiming to capture a larger share of the global cloud market, currently holding about 12% [8] Other Bets: Long-term Innovation - Alphabet's Other Bets division includes ventures like Waymo and Verily, focusing on long-term innovation rather than immediate profitability [9][10] - Although this segment posted an operating loss, it still generated revenue from healthcare services and broadband offerings, representing a high-risk, high-reward strategy [11]