Alphabet Inc., the parent company of Google, reported strong earnings and revenue growth for the third quarter of 2023. The company’s earnings per share of $1.21 beat analyst expectations of $1.09, and revenue of $74.6 billion grew 7% year-over-year.

Alphabet’s growth was driven by its two main businesses: advertising and cloud computing. Advertising revenue grew 6% year-over-year to $69.7 billion, while cloud computing revenue grew 38% year-over-year to $5.4 billion.

Alphabet’s advertising business continues to be its main source of revenue, accounting for over 90% of total revenue in the third quarter. The company’s advertising business is driven by its search engine, Google Search, which is the most popular search engine in the world. Alphabet also generates advertising revenue from its other products and services, such as YouTube, Gmail, and Google Maps.

Alphabet’s cloud computing business, Google Cloud Platform (GCP), is growing rapidly. GCP is the third-largest cloud computing platform in the world, behind Amazon Web Services (AWS) and Microsoft Azure. GCP is gaining traction with businesses of all sizes, and Alphabet is investing heavily in this business to maintain its growth.

In addition to its advertising and cloud computing businesses, Alphabet also has a number of other businesses, including its self-driving car company Waymo, its life sciences company Verily, and its hardware company Nest. These businesses are still relatively small, but they have the potential to grow into major businesses in the future.

Overall, Alphabet reported strong earnings and revenue growth for the third quarter of 2023. The company’s advertising and cloud computing businesses are driving its growth, and Alphabet is well-positioned for continued growth in the future.

Here are some additional thoughts on Alphabet’s third-quarter earnings and revenue growth:

Alphabet’s advertising business is still growing, but its growth rate is slowing. This is due to a number of factors, including the increasing competition from TikTok and other social media platforms, and the ongoing changes to Apple’s privacy policies.
Alphabet’s cloud computing business is growing rapidly, but it is still relatively small compared to AWS and Azure. Alphabet needs to continue to invest in GCP to maintain its growth and compete with AWS and Azure.
Alphabet’s other businesses, such as Waymo and Verily, are still in their early stages of development. It is too early to say how successful these businesses will be, but they have the potential to grow into major businesses in the future.
Overall, Alphabet is a well-positioned company with a number of strong businesses. The company is facing some challenges, such as the slowing growth of its advertising business and the competition from AWS and Azure. However, the company is also investing heavily in its cloud computing business and its other businesses. Alphabet is a good investment for investors who are looking for a company with a strong track record and a bright future.