Alphabet profit rose 36% to $20.64 billion in fourth quarter

Google’s strong results served as a reminder of the underlying power of its business and how, regardless of the circumstances surrounding it, the business will continue to thrive as long as people are active on the internet.

Google search remains the preferred on-ramp to the internet. YouTube is an essential online destination for entertainment, information and music. Although it lags Amazon and Microsoft, Google is well positioned to capitalize on the seismic shift of companies outsourcing technology infrastructure to the cloud.

With a solid foundation, Google made slight adjustments to fortify its strongholds.

The company has changed the way it lets retailers list products in a bid to entice more users to start on Google or YouTube when shopping online. In a recent survey, Morgan Stanley found that the percentage of people starting searches on Google and YouTube has increased since May, while the percentage of Amazon Prime users starting searches on Amazon has fallen.

While Facebook and other internet companies have felt the sting of the tighter privacy controls Apple has put in place on its devices, Google’s advertising business, which includes ads on YouTube, has continued to grow, increasing by 32% in the quarter, to $61.2 billion.

YouTube has introduced short videos – under 60 seconds – to compete with TikTok and appeal to younger audiences. Google said it has more than tripled the number of sellers in its cloud unit since 2019 as part of a push to expand into new industries and forge partnerships. Google Cloud’s revenue rose 45% to $5.5 billion, while the unit’s losses narrowed to $890 million from a loss of $1.24 billion a year earlier .

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