Challenges Facing Alphabet's Business in 2025

Alphabet Inc., the parent company of Google, remains a dominant force in technology, with a market capitalization of nearly $2 trillion and a business model anchored by its search engine, advertising, and growing cloud services. However, as of May 2025, Alphabet faces significant challenges threatening its market position and financial performance. These include fluctuations in ad spending, competition in search, the costly pivot toward artificial intelligence (AI), and intensifying antitrust scrutiny. This analysis explores these issues, drawing on recent developments and their implications for Alphabet’s future.