Eric Schmidt has been one of the biggest names involved in Google for quite some time, and when they shook up their corporate structure he handled key roles to keeping things moving smoothly. Today, Schmidt and Alphabet have announced that he’ll be stepping back from his role as executive chairman and will be taking over […]
Come comment on this article: Eric Schmidt steps into technical advisor role for Alphabet
Back in 2015, Google announced that it was restructuring its company into multiple parts, with a new giant company called Alphabet to oversee all of Google's various businesses. The reasoning behind the move was to essentially separate out some of Go…
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In an ongoing legal dispute between Uber and Waymo, Alphabet has dropped three of four patent claims and they have been instructed by the judge in the case to significantly reduce the scope of the trade secret claims that form the heart of the lawsuit. The legal dispute commenced when Waymo, Alphabet’s autonomous vehicle division, […]
Come comment on this article: Waymo, Uber lawsuit narrows after most patent claims dropped by Alphabet
If you happen to own an activity tracker, you probably know that the companies producing them are careful to disclaim the accuracy of the devices. Despite this, companies producing the devices have been hit with the occasional lawsuit because the data the devices provide are not “medical” grade or quality. For a company like Verily, […]
Come comment on this article: Verily, the Alphabet health company, announces the Study Watch
Nest isn’t in good shape, and that shouldn’t surprise anyone. Alphabet isn’t happy with their revenue, the Dropcam buyout hasn’t been smooth, and the connected home market is still experiencing a ton of growing pains. Under those conditions, it’s no shocker that they’re about to see a CEO shift. Current CEO, Tony Fadell, has announced […]
Come comment on this article: Nest CEO is leaving now that Alphabet is tightening the screws
Alphabet reported their 2016 first quarter financial results this past week. Although revenues were up compared to a year ago rising 17%, they did miss Wall Street expectations by the slimmest of margins coming in at $ 20.3 billion versus an expected $ 20.4 billion. Google Inc. still makes up the overwhelming portion of the Alphabet portfolio, but the company’s “moonshot” segments are getting capital support to keep them growing.
For Google Inc., the company breaks things down between the advertising business and all other businesses. If you want to understand why Google positions services and platforms to capitalize on advertising revenue streams, just realize that ad driven revenues accounted for 90% of the $ 20.1 billion in revenue for the quarter. That is a big reason why Google continues to invest in technologies like machine learning and natural language processing in order to ultimately deliver better ads. The remaining 10% is primarily sales through Google Play and other cloud services.
Google indicated advertising driven revenues increased thanks to growth in mobile search. Other Revenues also grew, by a healthy 24% year-over-year, thanks to growth in cloud enterprise businesses. A part of that positive result may be due to long-time rival Apple moving part of its data cloud from Amazon to Google.
Google’s other segments include all of the smaller businesses, sometimes referred to as “moonshots” that have been added to the portfolio. The biggest of these are Nest, Verily and Fiber which produce 99% of the revenue generated by these “Other Bets” companies. For the first quarter, these companies produced $ 166 million in revenue, a sizable 108% increased compared to a year earlier. However, that positive growth is offset by increases in spending, the majority of which was capital spending to build out Google Fiber infrastructure.
Alphabet and Google CFO Ruth Porat noted in a conference call that the pressure is on the various “moonshot” divisions to meet their milestones during 2016. She also indicated that the company is evaluating the portfolio of teams that may be working on similar projects or technologies to determine whether it is really appropriate to continue in an “anything goes” manner.
In response to just barely missing forecasts, the share price for Google stock fell by about 5%. Analysts think the stock was priced for “perfection” and when the company did not quite achieve that, the market responded negatively. However, other analysts noted that there is “nothing wrong with this company” and the swing was perhaps a bit more dramatic than it should have been.
Come comment on this article: Alphabet Q1 2016 revenue up but misses Wall Street target
Alphabet, Google’s parent company, missed analysts’ first-quarter 2016 revenue expectations with earnings of $ 7.50. Its ad business and “moonshots,” though, are doing better than expected.
The post Google parent Alphabet misses estimates; news not all bad appeared first on Digital Trends.
The paperwork is filed and it's official: Google has restructured itself into Alphabet. As of the close of business today shares of the old Google are now part of Alphabet, which counts Google as a subsidiary. On our end, this doesn't change much -…
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