Alphabet struggles with advertising amid AI competition
fool.com —
Alphabet, the parent company of Google, faces significant challenges in its core advertising business, which made up 76% of its revenue in 2024. New AI platforms and competition from TikTok are impacting its search and video services. Investors are concerned that Alphabet may follow a path similar to IBM, which struggled after losing its dominance in personal computing. Alphabet is attempting to adapt by developing its own AI platform, Gemini, but it risks falling behind competitors. Despite these challenges, Alphabet's growth remains stronger than IBM's past performance. The company is cutting costs and buying back shares, but its future depends on successfully navigating the shift toward AI services.