Alphabet Inc. (GOOG) is a multinational technology company based in Mountain View, California, United States. It was created in 2015 as a holding company for Google, the world’s most popular search engine, and its various other subsidiaries. Google, which is Alphabet’s most well-known subsidiary, offers a range of products and services such as the Google search engine, Google Maps, Google Drive, Google Docs, Gmail, and YouTube. Google also produces the Android mobile operating system, which powers a large percentage of the world’s smartphones and tablets. Alphabet Inc. operates globally, with a presence in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company is divided into three main segments: Google Services, Google Cloud, and Other Bets.
The Google Services segment provides a wide range of products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It also involves the sale of apps and digital content in the Google Play store, Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as YouTube non-advertising services. The Google Cloud segment offers infrastructure, cybersecurity, data, analytics, AI, machine learning, and other services. It also includes Google Workspace, a suite of cloud-based collaboration tools for enterprises such as Gmail, Docs, Drive, Calendar, and Meet, as well as other services for enterprise customers. Finally, the Other Bets segment focuses on the development and sale of health technology and internet services.
as of March 7, 2023
Just like with Microsoft and Apple, Alphabet is apart of the trillion dollar capitalization club. $60 billion in net income on $282 billion in revenue makes it one of the best companies in technology. The 15x forward earnings multiple may look cheap, but can it 4x sales and profits in the next 10-20 years? Or sooner? If it did, Alphabet would be pulling in $1 trillion in sales and nearly a quarter of a trillion in profit. Now, I realize money is pointless to talk about because the commodity is not what it once was, but those are ridiculous thoughts. It would say more about our society than the health of any one company. I think the same way about almost any organization, especially the TDCC ones. At Google, ad sales drive most of the financials and that’s a problem. Only time will tell if it will finally profit off YouTube.
