

Too big tech: is Alphabet approaching a growth ceiling?
30 snips Aug 4, 2023
Join Jan Piotrowski, The Economist's business editor, as he dissects Alphabet's growth challenges, exploring how market maturation and competition may limit its stratospheric returns. Sophie Pedder, the Paris bureau chief, reveals a surprising twist: despite social unrest, France’s economy is thriving, particularly in the luxury sector. Together, they navigate the intersections of innovation, economic resilience, and strategic investments, providing a deep dive into the future of tech and Europe’s unexpected vitality.
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Big Tech Growth Ceiling
- Alphabet's exceptional growth, like other tech giants, poses a challenge for future growth.
- Sustaining their historical 28% annual revenue growth requires adding impossibly large sums to their top line.
Maturing Digital Advertising
- Alphabet's core business, digital advertising, is maturing, limiting its growth potential.
- The shift from traditional to digital advertising reduces advertisers' flexibility during downturns.
Alphabet's AI Potential
- While Alphabet possesses strong AI capabilities and is launching new AI tools, its technological standing is not far behind competitors.
- The monetization of AI-assisted search compared to traditional search remains uncertain.