Alphabet Sees Profits Rise
Alphabet, the company that is the owner of the world’s most used search engine, Google, has reported that its revenue has increased to $21.5 billion up from $17.7 billion, one year back.
The firm, headquartered in Mountain View, California in the United States of America is a multinational conglomerate owning companies like Google, Google Fiber, Calico, Google Capital, and Sidewalk Labs among other companies.
It was formed in the month of October last year by the founders of Google – Larry Page and Sergey Brin. The aim of formation of the company was to expand the name of Google from being a ‘search engine’ company to one that encompasses many fields like venture capital, equity research, life sciences, and research.
Alphabet’s quarterly earnings have beaten analyst’s expectations yet again proving once again why the internet giant is truly one of the best companies in the world. Its earnings were $8.42 per share than the estimation of $8.04 per share which Wall Street had predicted. The company’s quarterly sales rose 21% over one year which in itself is a huge rise.
Google has been using artificial intelligence in its video segment – YouTube, to enhance users’ experience. In this segment, Google has been facing stiff competition from Facebook and Twitter. Even then, Google was able to manage a stellar 17% increase from its quarter one revenues.
Calico LLC is the biotech arm of Alphabet which does research in a bid to increase longevity and help cure diseases. It is an acronym for ‘California Life Company’. Google Fiber is the company that provides the internet over many districts in the United States by offering four options to users. Sidewalk Labs is the subsidiary that wants to upgrade the infrastructure of cities by technological approaches such as reducing energy usage and lower cost of living. Google Capital is the venture capital company of Alphabet which invests for profit and has already invested in twenty-one companies belonging to different sectors like FinTech, security, and big data.
From the above paragraph, it can be clearly seen how Google, once thought of as only a search engine company has expanded rapidly to cover such diverse industries. No wonder that the parent company, Alphabet, is doing so well and churning so much of profit year after year, even though it has other behemoths like Microsoft and Facebook as competition.
Alphabet seems to be betting a lot on its world famous self-driving cars. The company’s CFO, Ruth Porat has mentioned that the tests that the cars have undergone have travelled more than 1.6 million miles. Looks like all the self-driving is definitely paying off for the company!