Yahoo Finance·2026-01-21 11:20Core Viewpoint - Artificial intelligence (AI) is significantly impacting the stock market, with Alphabet being a key player among the "Magnificent Seven" tech companies driving advancements in hardware and software [1] Company Overview - Alphabet's stock surged by 65% last year, indicating strong market confidence and interest from institutional investors [2] - The company is recognized for its diverse revenue streams, primarily from its advertising business on Google and YouTube, along with subscriptions and consumer electronics [4] - Alphabet is also making strides in cloud computing, competing with major players like Amazon Web Services and Microsoft Azure [4] Financial Performance - Alphabet's services segment, which includes advertising, subscriptions, and devices, boasts a 40% operating margin for the first nine months of 2025, while Google Cloud Platform has a 21% margin [5] - Over the trailing 12 months, Alphabet has emerged as the most profitable AI business among major hyperscalers, strategically investing profits across the AI value chain [6] Competitive Advantage - The company's vertically integrated ecosystem allows it to control various aspects of its value and supply chain, enhancing its operational efficiency and market position [8]