Google's Profits Are Exploding Because the Web Is Massive

Several years ago, there were some concerns about Google's profitability, as attention shifted to mobile devices, where ads are puny, annoying, and a more measly source of revenue on a cost-per-click basis. Today, cost-per-click is indeed declining. But Google has more than made up for the lost revenue by increasing total clicks on ads in mobile search results and YouTube videos, especially in Asia. While the Alphabet family includes some precocious younger children, like a growing cloud business and the self-driving car division Waymo, Alphabet is basically an advertising company, with nearly 90 percent of its revenue coming from ads. There are at least two trends that are driving the company's gains: its utter dominance as the discovery mechanism for information online and the inexorable shift to computers--particularly the ones in our pockets and purses--away from print and television.