TECH - Alphabet Rides on Strong Google Services Segment | Benzinga
Alphabet's (NASDAQ: GOOGL) shares have rallied 25.5% in the year-to-date period, outperforming the industry's growth of 21.2%. The outperformance can be attributed to the strong performance of the Google Services segment, which is mainly driven by Search, YouTube, Android, Pixel and its first-party web apps.
A strong product portfolio and an expanding partner base are key growth drivers of the Google Services segment, which contributes to the majority of Alphabet's total revenues.
In the first quarter of 2024, revenues from the Google Services business increased 13.6% year over year to $70.4 billion, accounting for 87.4% of total revenues.
Alphabet's division, Google, is making concerted efforts to strengthen this segment further on the back of feature upgrades for its first-party web apps in order to increase their adoption among users.
In this regard, Google's implementation of a Material 3 redesign for one of its first-party web apps, Google Photos, remains noteworthy. The redesign has placed Google Photos' core gallery in an internal container with a white background, while navigation, search bar and navigation drawer are placed on a light blue background.
Earlier, Alphabet also introduced a Material 3 redesign for the Google Pay web application to offer ...