Alphabet Inc.

Overview Key strengths Key risks Strong position in the online search and video advertising market, supported by unique data. Increased regulatory scrutiny across regions in antitrust, liability for third-party content, and privacy. Strong technological talent that drives innovative product development. Business concentration because most revenue and earnings come from digital advertising. Good operating record with strong revenue growth and high profit margins. High investment required to fund AI initiatives. Financial flexibility with a substantial net cash balance. Our ratings reflect Alphabet's status as the global leader in digital advertising and its leading franchises in search, mobile, and digital video. We think subsidiary Google's position in digital advertising is solid because the large scale of its platform allows advertisers to reach

...Alphabet Inc. remains the preeminent global digital advertising company, though advances in generative AI are creating new competitive opportunities and challenges. Our ratings reflect Alphabet's status as the global leader in digital advertising and its leading franchises in search, mobile, and digital video. We think subsidiary Google's position in digital advertising is solid because the large scale of its platform allows advertisers to reach sizable audiences. Its unique data sets allow advertisers to target very specific audiences and measure the return on investment they do not typically get from traditional advertising. We think the secular shift of ad spending online will overwhelm any potential for share loss from competitors such as Facebook...

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