Revenue distribution by industry:

• Advertising: approx. 80%
• Cloud services: approx. 12%
• Other (including hardware, Google Play, YouTube Premium): approx. 8%

TOP 3 markets and their percentage shares:

• USA: approx. 45%
• Europe: approx. 30%
• Asia-Pacific: approx. 15%

Alphabet Inc. generates the majority of its revenue from the advertising business, dominated by platforms such as Google Search, YouTube, and the Google Display Network. Google Cloud's cloud services are a growing area contributing increasingly to revenue.

The USA remains the largest market for Alphabet, followed by Europe, which plays a significant role in the revenue mix. The Asia-Pacific region is also an important market gaining importance due to the increasing internet usage and growing digital economy in the region.

Main production sites:

• Hardware production: USA, China, Taiwan
• Data centers: USA, Europe, Asia

Alphabet Inc., the parent company of Google, mainly produces its hardware products such as Pixel smartphones and Nest devices in the USA, China, and Taiwan. These countries offer a combination of technological expertise and cost-effective production.

In addition, Alphabet operates data centers worldwide, which are crucial for providing their cloud services and search engine capabilities. These data centers are located in strategically important regions in the USA, Europe, and Asia to ensure fast and reliable data processing and transmission.

Artificial Intelligence (AI) and Machine Learning: Priority in Product Development
Cloud Computing: Growth through Google Cloud
Diversification: Investments in new technologies and business areas

Alphabet Inc. is strongly focusing on the advancement and integration of artificial intelligence and machine learning into its products and services. This includes both existing offerings like Google Search as well as new initiatives.

Another strategic focus is on expanding the cloud computing business. Google Cloud has received significant investments in recent years to compete with rivals such as Amazon Web Services and Microsoft Azure.

In addition, Alphabet is diversifying its business activities through investments in new technologies and areas, such as autonomous driving with Waymo and healthcare solutions with Verily. This diversification strategy aims to tap into new revenue streams and spread the risk.

Main materials: Semiconductors, rare earths, aluminum, glass

Countries of origin:

• Semiconductors: Taiwan, South Korea
• Rare earths: China, USA
• Aluminum: Canada, Russia
• Glass: Japan, Germany

Alphabet Inc., as the parent company of Google, heavily relies on technology production, especially for hardware products like smartphones and servers. The semiconductor industry is crucial for the production of processors and memory chips, with Taiwan and South Korea leading in manufacturing.

Rare earths are essential for the production of electronic components and batteries. China dominates this market, but the USA is also an important supplier.

Aluminum is used for casings and other hardware components, with Canada and Russia being the main suppliers. Glass, needed for screens and other optical components, is often imported from Japan and Germany, known for their high-quality glass products.

Market share in online advertising: 28.6% (2024, estimated)
Search engine market share: 91.9% (2024)
Research and development (R&D) expenses: $39.5 billion USD (2023)

Alphabet Inc. has a significant competitive advantage, primarily demonstrated by its dominant position in online advertising and search engine sectors. With a market share of nearly 92% in the search engine sector, Google is the undisputed number one and benefits from network effects that make it difficult for new competitors to gain significant market share.

In addition, Alphabet consistently invests substantial amounts in research and development, enabling the company to remain at the forefront of technological innovations. These investments promote the development of new products and services that strengthen the existing portfolio and open up new revenue streams.

Alphabet's competitive advantage is further reinforced by its strong brands, extensive database, and the ability to offer personalized advertising solutions. Together, these factors make it extremely challenging for competitors to seriously challenge Alphabet in its core areas.

Institutional investor share: approx. 80% (estimated for 2025 based on historical data)

Insider purchases/sales: No significant insider purchases; regular insider sales (based on historical trends)

The institutional investor share at Alphabet Inc. traditionally stands at about 80%, as large investment funds, pension funds, and other institutional investors heavily invest in the company. This high participation reflects the confidence in Alphabet's long-term stability and growth potential.

Insider sales are regularly observed at Alphabet, often attributable to stock options and compensation programs. These sales are usually planned and do not raise immediate concerns, as they are frequently part of the compensation structure for executives. Significant insider purchases, on the other hand, are rare, which is not uncommon in large technology companies.

Market share of Alphabet Inc. in the digital advertising market: 28.9% (2025, estimated)

Main competitors and their market shares in the digital advertising market:

1. Meta Platforms, Inc. (NasdaqGS:META): 23.4%
2. Amazon.com, Inc. (NasdaqGS:AMZN): 14.6%
3. Microsoft Corporation (NasdaqGS:MSFT): 8.3%
4. Alibaba Group Holding Limited (NYSE:BABA): 5.1%
5. TikTok (ByteDance Ltd.): 4.7%

Moat of Alphabet Inc.: Alphabet Inc. has a significant moat, mainly characterized by its dominant position in online search and the digital advertising market. The search engine Google is a global leader and generates the majority of the company's advertising revenue. In addition, Alphabet benefits from strong integration of its services, such as YouTube and Android, which are also significant sources of income.

Compared to its competitors, Alphabet has a technological advantage due to its advanced algorithms and the ability to effectively analyze large amounts of data. This enables targeted advertising and high user engagement.

Comparison of moats:

• Meta Platforms, Inc.: Strong moat through social networks like Facebook and Instagram, which generate high user engagement and advertising revenue.
• Amazon.com, Inc.: Advantage through the integration of e-commerce and advertising, enabling direct user purchase intent.
• Microsoft Corporation: Strong moat in enterprise software and cloud services, but less in the digital advertising market.
• Alibaba Group Holding Limited: Dominance in the Chinese market and integration of e-commerce and advertising.
• TikTok: Rapidly growing influence in the social media sector, especially among younger target groups.

Overall, Alphabet Inc. has one of the strongest moats in the digital advertising market, but some competitors are catching up in certain areas, especially through innovative platforms and technologies.

Revenue Growth: 10% (2024) Profit Growth: 8% (2024) R&D Expenses: $31 billion USD (2024)

Alphabet Inc. recorded a revenue growth of 10% in 2024, attributed to strong performance in its core areas such as advertising and cloud services. Profit growth stands at 8%, demonstrating solid profitability despite increased investments in research and development.

In 2024, the company invested around $31 billion USD in research and development, highlighting its continuous innovation capabilities and focus on future technologies. These investments could potentially lead to new revenue streams and a stronger market position in the long term.

Given these factors, Alphabet Inc. could be an attractive investment for investors interested in long-term growth, particularly through the exploration of new markets and technologies. The company's strong financial foundation and innovation capacity provide a solid basis for future success.

Dividend payment: None (As of 2025)

Alphabet Inc. has not distributed any dividends to its shareholders so far. The company has traditionally focused on reinvesting its profits into growth and the development of new technologies rather than paying dividends.

This strategy allows Alphabet to invest in innovative projects and acquisitions, which can lead to long-term value appreciation for the shareholders. Analysts expect that Alphabet will not introduce dividend payments in the near future as the company continues to focus on growth and expansion.