Yahoo Finance·2026-02-10 12:05Core Insights - Alphabet remains a dominant player in the search engine market, holding approximately 90% global market share, with search revenue constituting 55% of its total revenue in 2025 [3][4] - The company has a significant competitive advantage due to its distribution channels, owning the leading web browser (Chrome) and smartphone operating system (Android), both with around 70% market share [5][6] - Google Cloud is identified as the primary growth driver for Alphabet, with a notable revenue increase of 48% last quarter, reaching $17.7 billion [7][8] - Alphabet's custom AI chips, known as tensor processing units (TPUs), provide a structural cost advantage in cloud computing, enhancing its competitive position against other providers [9] Group 1 - Alphabet's search business remains its core revenue source, with a 17% growth in search revenue in Q4, showing consistent acceleration throughout the previous year [4] - The company's search moat is reinforced by its partnership with Apple, ensuring it remains the default search engine on Apple devices [5][6] Group 2 - Google Cloud's operating income more than doubled from $2.1 billion to $5.3 billion last quarter, indicating strong operational leverage [8] - The development of TPUs over the past decade has allowed Alphabet to optimize its cloud services, providing a competitive edge that is difficult for others to replicate [9]