Google Needs To Scale Cloud Or Fall Behind

Michael Del Monte profile picture
Michael Del Monte
3.42K Followers
(10min)

Summary

  • Google’s cloud growth is strong but lags in profitability compared to peers. Scaling data center capacity may improve margins.
  • Google’s AI integration in search, cloud, and advertising enhances productivity and profitability, with significant growth in Google Cloud and YouTube ad revenue.
  • Google’s Vertex AI and Mandiant security integration strengthen its cloud offerings, appealing to developers and enterprises leveraging AI applications.

Digital marketing concept, Businessman using laptop with Ads dashboard digital marketing strategy analysis for branding. online advertisement, ad on website and social media. SEO. SMM.

Boy Wirat

Google (NASDAQ:GOOG) has experienced reinvigorated growth across its segments as demand for GenAI has brought new life to the search platform. Google’s cloud niche is primarily with applications developers with 90% of AI applications being developed on Google’s

This article was written by

Michael Del Monte profile picture
3.42K Followers
Michael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.Michael takes a macro-value-oriented approach to investment analysis and prides himself in being able to make investment recommendations based on cross-industry analysis.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GOOG Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GOOG

Related Stocks

SymbolLast Price% Chg
GOOG
--
GOOGL
--
GOOG:CA
--