European Commission Google, the target for billions of euros in European Union antitrust fines, has been hit by a fresh EU probe over concerns it’s illegally rigging the cost of advertising on its search engine. The European Commission suspects the Alphabet Inc. unit is “artificially increasing the clearing price” of ad auctions “to the detriment of advertisers,” according to a copy of a Feb. 9 letter to potentially affected businesses, seen by Bloomberg. Most Read from Bloomberg The Brussels-based re ...

Core Insights - Google's latest quarterly report indicates resilience in its internet business amid an AI transformation, presenting potential growth opportunities for the company [1] - Alphabet Inc's fourth-quarter profit surged 30% year-over-year to $34.5 billion, with revenue increasing 18% to $113.8 billion, surpassing analyst expectations [2] Financial Performance - Alphabet's profit for the fourth quarter reached $34.5 billion, or $2.82 per share, while revenue climbed to $113.8 billion [2] - Digital ad sales for Google totaled $82.3 billion in the fourth quarter, reflecting a 14% increase from the previous year [10] - Google Cloud revenue, which supports AI services, rose 48% to $17.7 billion [10] AI and Business Strategy - CEO Sundar Pichai highlighted that AI is driving an "expansionary moment" for the company, with increased usage in search and advertising [4] - Alphabet is significantly investing in AI, with capital expenditures projected to reach $91 billion in 2025, a substantial increase from previous years [8] - The company's capital expenditure budget is expected to represent nearly half of its projected 2025 revenue of $403 billion [9] Market Position and Competition - Alphabet's stock price has increased nearly 60% over the past five months, achieving a market value of $4 trillion [5] - Apple has partnered with Google to utilize its Gemini technology in an upgrade to Siri, indicating confidence in Google's AI capabilities [6] - Google is actively integrating its Gemini AI into its search engine, Gmail, and Chrome to maintain its competitive edge against emerging companies like OpenAI [6]

The Justice Department and 35 states will appeal a September 2025 court ruling that allowed Google parent company Alphabet to keep its Chrome browser after losing an antitrust case.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional l ...

Core Viewpoint - The U.S. government and a majority of states are appealing a federal court ruling that found Google has a monopoly in online search but did not impose strict remedies [1][2]. Group 1: Appeal Details - The appeal will likely challenge the judge's decision not to require Google to divest its Chrome browser or terminate its agreement with Apple for being the default search engine [2]. - Google is also appealing the ruling that it violated antitrust laws to suppress competition in online search and advertising [3]. Group 2: Court Ruling Insights - Judge Amit Mehta rejected more severe remedies, such as forcing Google to sell its Chrome browser or Android operating system, and allowing Google to continue its payments to Apple for default search engine status [4]. - The emergence of generative AI companies like OpenAI has been noted as a new competitive threat to Google since the case was filed [4]. Group 3: Implications for Antitrust Enforcement - The ruling represents a significant victory for Google and a setback for U.S. antitrust enforcers, highlighting judicial reluctance to intervene in rapidly evolving tech markets [5].

Core Insights - Alphabet has attracted significant interest from institutional investors, becoming a top holding for several hedge fund billionaires by the end of Q3 2023 [1] - The company has regained its status as a leader in artificial intelligence, overcoming initial investor fears regarding the impact of AI on its core Google search business [2] Investment Appeal - Alphabet's stock was considered undervalued at the beginning of 2025, leading to increased interest from prominent investors [2] - The company is now viewed as one of the best-positioned AI firms for future growth [2] Technological Advantages - Alphabet possesses a comprehensive AI stack, highlighted by its Tensor Processing Units (TPUs), which provide a structural cost advantage for running AI workloads [4] - The TPUs have been integrated into Alphabet's ecosystem and are available for customer deployment through Google Cloud, creating an additional revenue stream [4] AI Model and Product Integration - Alphabet's Gemini large language model (LLM) is recognized as one of the best AI models globally and is integrated across its products, enhancing Google Search with AI-powered features [5] - The introduction of AI Mode allows users to switch seamlessly between traditional search and an AI chatbot, improving user experience [5] Distribution and Monetization - Alphabet's advantages in distribution and advertising remain strong, with ownership of the Chrome browser and Android OS positioning it as a primary internet gateway [6] - The extensive ad network enables effective monetization of both search and AI chatbot users [6]

Google on Wednesday announced that it is bringing more of its Gemini AI features to its Chrome browser, the latest in the company's efforts to put its new-age tech front and center for users. The Gemini-powered features include the image generation tool Nano Banana, Google's "Personal Intelligence" feature and "Auto browse," an agentic AI tool that lets users command the browser to perform various tasks across the web with a single prompt. Google is also introducing a new Chrome design that includes a panel ...

Core Viewpoint - Alphabet was the best performer among the "Magnificent Seven" stocks in 2025, with a stock increase of over 65%, significantly outperforming Nvidia, which gained nearly 39% [1] Group 1: AI Impact and Investor Perception - The primary reason for Alphabet's outperformance was its ability to shift investor perceptions regarding the impact of artificial intelligence (AI) on its business [2] - The Gemini model received widespread acclaim as a leading large language model (LLM), enhancing investor confidence in Alphabet's AI capabilities [2] Group 2: Revenue Growth and Market Position - Google search revenue accelerated due to AI-powered features like Lens and Circle to Search, and a favorable ruling in its antitrust trial allowed Alphabet to maintain its distribution advantage [3] - The ruling confirmed Alphabet's ability to keep its Chrome browser and Android operating system, further solidifying its position as a primary gateway to the internet [3] Group 3: Custom AI Chips and Cost Advantage - Alphabet's tensor processing units (TPUs) have been recognized for their significance, providing a structural cost advantage in LLM training and inference [4] - The company developed TPUs over a decade ago, giving it a competitive edge in the custom AI chip market, allowing it to avoid the "Nvidia tax" [4] Group 4: Cloud Computing and Future Growth - Google Cloud emerged as a significant revenue driver in 2025, with customers utilizing TPUs for their AI workloads [6] - A notable $21 billion TPU order from Anthropic through Alphabet's partner Broadcom indicates strong demand, with projections suggesting that deploying 500,000 TPUs could increase Alphabet's revenue by approximately $13 billion [6]

Core Viewpoint - Alphabet was the top-performing stock among the "Magnificent Seven" in 2025, driven by multiple catalysts, but a similar performance in 2026 is not expected, although it is anticipated to outperform the market [1]. Group 1: Performance and Market Position - Alphabet's stock had a remarkable 65% increase in 2025, but such a performance is not expected to be repeated in 2026 [1]. - The company has emerged as a leader in the generative AI sector, with its Gemini model challenging existing leaders in accuracy and utility [3][8]. Group 2: Revenue and Business Concerns - Google Search, Alphabet's primary revenue source, generated $56.6 billion out of a total of $102.3 billion in Q3 [4]. - Concerns regarding Google Search included threats from generative AI and potential divestitures due to antitrust rulings, but these fears have been alleviated [5][6]. Group 3: Legal and Regulatory Developments - A federal judge imposed lighter penalties on Alphabet for antitrust violations, allowing the company to avoid a breakup and only requiring minor concessions [7].

Financial Milestone - Alphabet reached a $4 trillion valuation for the first time, surpassing Apple to become the second-most valuable company in the world [1] - Alphabet is the fourth company to achieve this milestone, following Nvidia, Microsoft, and Apple [1] AI Partnership - Apple selected Google's Gemini AI model to enhance its digital assistant Siri, which is pre-installed on every iPhone, although the financial details of the deal were not disclosed [2] - Apple stated that Google's technology provides the most capable foundation for its AI models [2] Stock Performance - Alphabet's stock surged approximately 65% in 2025, outperforming its peers in the "Magnificent Seven" group of elite stocks [3] - Despite concerns of a stock market bubble, investor enthusiasm for AI investments remains strong [3] Product Launches - Alphabet has addressed investor concerns regarding its AI strategy through high-profile product launches, including the Gemini AI model and the Nano Banana image generator [4] - OpenAI's latest model, GPT-5, did not meet expectations, allowing Alphabet to gain a competitive edge [4] Cloud Business Growth - Google Cloud's revenue increased by 34% in the third quarter, with a backlog of non-recognized sales contracts reaching $155 billion [5] - The cloud unit's growth has been bolstered by renting out self-developed AI chips previously reserved for internal use [5] Advertising Business Stability - Google's advertising business, primarily driven by Google Search and YouTube, has remained stable despite economic uncertainties and competition [6] - The company is currently navigating two significant US antitrust lawsuits, with a judge ruling against breaking up the company in the first case [6] Antitrust Legal Challenges - In the second antitrust case, a judge ruled that Google had illegally monopolized the online ad market, with a trial underway to determine remedies, which may include divesting parts of its advertising business [7]

Group 1 - The "Magnificent Seven" stocks represent seven major companies that constitute approximately one-third of the market cap-weighted S&P 500, significantly influencing daily market movements [1] - Alphabet (NASDAQ: GOOG) is identified as the top pick among the Magnificent Seven stocks for 2026, indicating a strong position heading into the new year [2] Group 2 - Alphabet, widely recognized as Google, holds a dominant position in global internet search with 89.9% market share, far surpassing its closest competitor, Bing, at 4.2% [4] - The Chrome browser also leads with a 71.2% market share, compared to Safari's 14.3%, reinforcing Alphabet's significant influence in the internet space [4] - In Q3, Alphabet generated $74.18 billion in advertising revenue, a 12.6% increase year-over-year, driven by advanced AI tools that enhance search relevance and ad optimization [6] - Advertising accounted for 72% of Alphabet's total revenue of $102.34 billion in Q3, contributing to a remarkable $73.55 billion in free cash flow over the past year [7] Group 3 - Alphabet's cloud computing segment, Google Cloud, is experiencing rapid growth, generating $15.15 billion in revenue in Q3, which is a 33% increase from the previous year [8] - Google Cloud's operating income rose to $3.59 billion, up from $1.94 billion a year ago, highlighting its expanding profitability [8]