Alphabet, parent company Google has just announced the financial statements in the first quarter after restructuring. This report shows that the Alphabet continues to grow. They managed to get a revenue of USD21,3 billion with profits USD4,9 billion. As we quoted from CNN Money and Engadget, this advantage gained from the business search engine, YouTube and ads. One interesting thing is that Google also announced the financial reports of companies that belong to the category Other Bets.
Before the restructuring, the financial statements of the businesses in the category Other Bets will be part of Google’s financial statements. However, with this restructuring, Google can know what kind of business to make money and what business actually loses money. If Google is a moneymaker, Other Bets actually spend money. Business from Other Bets secured the income of USD448 million, but they do not get profit. In 2015, these companies actually suffer a loss of USD3.6 billion. Alphabet CFO Ruth Porat said that the financial report yesterday showed that the company Other Bets that a lot of money is Nest, Google Fiber and Verily.
This is not surprising considering that the main purpose of business is for Alphabet Other Bets can also experiment with technology that does not become Google’s main business. The technology developed by Verily, Nest and the development of the car without the driver is an unproven technology will make money, in contrast to Google’s main business is advertising and Android. Even so, the team behind Google believes that in the future, these companies will make big money. Google’s financial statements were positive this makes Alphabet’s stock increased by nearly 4 percent. And the result, Alphabet now has a valuation of the company amounted to USD551 billion. In contrast, Apple’s stock actually fell 1 percent, making the company’s valuation fell to USD531 billion.
This means, Alphabet managed to shift Apple from its position as the most valuable company in the world. Alphabet has become the world’s largest companies for a long time, since they still use “Google” as a flagship. But now they founded Alphabets as the parent company to overshadow all business units Google. Google’s growth is quite surprising, starting from a simple search engine, and then turn into a horrible monster. You will never find the simplicity of Google although they still retain the look simple. All the best company is the best choice by choosing to develop a simple search engine. Simplicity became a trademark for Google over several decades.