Google has undergone a major transformation as it grappled with rapid advances in artificial intelligence technology and increasing regulations. The company reorganized its search engine, Android and hardware teams around artificial intelligence and launched its Gemini AI model. These moves are considered a response to the biggest threats Google has faced in its 25-year history.
After announcing its latest financial results, Alphabet announced that it will distribute dividends to its shareholders for the first time and will buy back shares worth $ 70 billion. These developments increased investors' confidence and ensured that the company's market value remained above 2 trillion dollars for one day.
Google is currently positioned as the fourth most valuable public company in the world. Nvidia is ahead of other technology giants such as Google, Amazon and Meta, followed by Apple and Microsoft. This success is seen as a result of Alphabet's strategic moves and investments.
Unlike other companies, Google has managed to create new revenue streams by using artificial intelligence in advertising. Google has increased its advertising power by allowing advertisers to create more effective campaigns, especially thanks to its Performance Max tool.
Additionally, major companies such as Discover Financial and Ikea have begun using Google's AI tools. These tools have provided significant improvements in customer service and sales strategies and increased the effectiveness of Google's technology solutions.
Google takes a balanced approach by avoiding any major changes to its search engine services. Sundar Pichai states that they are taking careful steps on how artificial intelligence can improve the search experience. This strategy aims to both protect the user experience and keep the traffic flow balanced.
According to the 2024 first quarter earnings report published by Alphabet, Google made a profit of $23.7 billion. This result shows a 15% increase in revenue compared to the same period in the previous year and a profit increase of 14% compared to the holiday period.
Although Google has laid off thousands of employees in a bid to increase earnings, this process appears to have slowed or stopped. The company assumed a significant cost for layoffs, spending $700 million in January alone.
Google continues to grow in digital advertising and subscription services. In particular, revenues from YouTube Premium subscriptions make significant contributions to overall revenue growth. Google is also focusing on YouTube Shorts videos to compete with TikTok and Instagram Reels.
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