Alphabet Inc. (NASDAQ:GOOGL), most commonly known for being the parent company of Google, has stated that they are currently focusing on all the other child companies, which they are in possession of, to derive a vision, from beyond the web.
This includes a diverse range of products, from Artificial Intelligence units to the new pixel smartphone. The company stated that all projects, made by Google, or any other child company, will be carefully focused on in order to maximize the potential that such projects can yield.
What this may mean for Google
Despite many believing that this is due to the lack of performance that Google has shown in the last while, this could not be further from the truth, according to those who are well-versed in the matter. In fact, Google is one of the largest money makings operates under the control of Alphabet, which has allowed them a great deal of expansion.
It was recently evaluated that in the last quarter alone, the triple bottom line revenue growth for google, scaled by almost 25 percent, which in market terms, is a substantial sum of money. This is despite the fluctuating web-development market, which has caused many web-based companies to lose a fair amount of profit.
However, despite the success, and money-making capabilities of Google, due to the consistently rising operation costs for the company, the expected profit yield remains below what Alphabet extended to the company, which may be the reason that other bets, will now be put in a prioritized category.
Other child projects which Alphabet will be placing a focus on
When Alphabet refers to the other options, to which a higher value focus will be placed. The company is referring to projects such as Nest, Google Fiber, and Verily. These projects have climbed a whopping 82% yield, to a value of $809 million.
At a conference call on Thursday, the CEO of Google, Sundar Pichai, stated, “The key to the future is machine learning and artificial intelligence, which the company hopes will drive everything from home automation platforms like Nest and Google Home to mobile assistants.”
Alphabet stock closed at $856.98 on Thursday, after witnessing a decline of $1.47 or 0.17%