"Alphabet's revenue in the fourth quarter of 2025 rose 18% year over year to $113.8 billion. This is a notable acceleration from the growth rates investors saw earlier in the year."
"Management attributed this strength to an 'expansionary moment,' fueled by artificial intelligence (AI). People are engaging in longer, more complex search sessions, creating more opportunities for targeted advertising."
"Queries in AI Mode are 3x longer than traditional searches, which enhances the potential for advertisers to reach their target audiences effectively."
Alphabet's shares rose nearly 5% amid speculation about the bottom of its recent pullback. After a peak of $350 per share, the stock fell over 20%. Recent earnings show strong growth, with Q4 2025 revenue up 18% year over year to $113.8 billion. The search business saw a 17% revenue increase, attributed to AI-driven engagement. This growth indicates a compelling investment opportunity as demand across search and cloud services remains robust.
Read at The Motley Fool
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