Alphabet's Strong Performance and AI Investments

Alphabet's recent earnings report highlighted significant growth, with revenue increasing by 15% across all business segments. Its operating margins showed improvement, reflecting the success of its heavy investments in artificial intelligence (AI) capabilities. Despite current scrutiny over its spending on AI, the company is in a competitive position as it transitions from traditional search engines to what are termed 'answer engines.' This shift involves evolving the way information is queried, allowing users to ask direct questions rather than merely searching for keywords, which requires substantial ongoing investment.