Strong position in the online search and video advertising market supported by unique user data. Strong technological talent drives innovative product development. Good track record of operating performance with double-digit percentage revenue growth and high profit margins. Somewhat limited product diversity as most revenues come from advertising. Increased regulatory scrutiny across regions. Growing capital intensity on cloud investment. Financial flexibility from substantial net cash balances with cash and investments of $102.9 billion and funded debt of $5.3 billion. Free operating cash flow (FOCF) of about $21 billion over the past 12 months, despite significant investments in capital expenditure and research and development. Significant capacity for acquisitions and shareholder returns within the rating constraints. The stable outlook reflects S&P Global Ratings'
