Alphabet's Main Revenue Comes from Advertising

Alphabet exceeded analysts’ revenue expectations by almost $850 million in this quarter’s financial report. Compared to last year’s Q1 earnings, Google’s parent company managed expand its revenue by 26 percent. But how does Alphabet manage to monetize its power in tech?

Well, for this trimester it realized earnings from shares it holds in startups like Uber or smart home OEM Nest. But as this graphic shows, Alphabet’s main source of income remains targeted advertisement. In this year’s initial months, the advertisement business accounts for some 86 percent of the tech giant’s revenue. But with the ongoing outrage about microtargeting expert Cambridge Analytica and Facebook’s loose hand on user profiles, rougher days in the targeted advertisement business for Alphabet are sure to come.