As it seems Google is trying to turn into the Berkshires Hathaway of the internet. But the issue we see here is all of their pet projects are ventures that don’t many any income, infact they lose millions of dollars. Such as Calico, X Labs, Fiber, Google X are all money burners.
I think it’s smart that Google decided to buy a .xyz and rename themselves, rebranding, renaming is a huge statement for constant change in any business called Alphabet. Google is no different. But let’s keep in mind that Google is intact an online advertising company, 98% of their income comes from (wink, wink) Google AdSense and Google Adwords, their advertising platform.
Now what are Google’s biggest money drivers? Google Maps, YouTube, Chrome, and Android. Keep in mind, they bought the technology for YouTube and Android, they did not in-fact create it by any means whatsoever. Google Maps works off of Google Search thats a no brainer, and Chrome, if your gonna be the number search engine might as well have your own browser. This is not rocket science, here. So when Google keeps it all online and either add on what people want or better yet buys it with their boatloads of cash, that stock goes up.
Now, Alphabet, I only hope they do more in their real wheelhouse that made them money. Try being innovative with 10 billion dollars a year and over 57,000 employees, somehow they cannot crank out internet one hit wonders like clubby music tracks to guarantee some cashflow like a Miley Cyrus jams.Alphabet, Google, Larry Page