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Alphabet

Company

Alphabet is the holding company which included the updated Google deprived of the directions which are not connected with Internet business and software

Revenue and profit of the company, $

RevenueProfit
2017110 855 000 00012 662 000 000
2018136 819 000 00030 736 000 000

Assets

+ Alphabet

In 2015 Google endured large-scale reorganization as a result of which the company began to be called Alphabet, and Google — the main, but not its only part. In separate divisions the directions which are not connected with the Internet — for example, production of autonomous cars were displaid.

Performance Indicators

2018: Revenue — $136.82 billion; profit — $30.74 billion

In 2018 revenue of Alphabet made $136.82 billion against $110.86 billion the previous year (growth by 23%). Almost all sales — $136.22 billion — fell on Google. In 2017 revenues of Google were measured by $110.86 billion. The main part of turnover is the share of receipts from advertizing.

The remained revenue of Alphabet is created by an Other Bets segment within which development of new projects, such as contact lenses with function of determination of level of sugar in blood, balloons for ensuring Internet access and unmanned vehicles is conducted. In 2018 revenue of Other Bets made $595 million, having increased with $477 million in the 2017th.

Financial performance of Alphabet
Financial performance of Alphabet

Total number of paid transitions according to advertisements which Alphabet shows to users in increased by 22% year on year. At the same time the cost of each click fell by 9%.

The net profit of Alphabet at the end of 2018 reached $30.74 billion against $12.66 billion value of year prescription.

The annual profit of Google raised from $32.29 billion to $36.52 billion, and in an Other Bets segment equal $3.36 billion losses took place. In 2017 losses of Other Bets equaled $2.74 billion.

Alphabet actively invests in business development therefore a capital expenditure of holding in 2018 almost doubled and reached $25.14 billion.

In day of the publication of results — on February 4, 2019 — the quotations of Alphabet dropped approximately by 3% in spite of the fact that revenues of the company exceeded market expectations. Analysts connect this recession with the growing investments into cloud business, a video hosting of YouTube and other projects on which the holding lays great hopes on growth. According to the analyst of Wedbush Securities Daniel Ives, costs for cloud services will pay off within several years.

Since the beginning of 2019 on February 4 of the stock Alphabet rose in price for 9%.[1]

History

2019: The decision of the authorities of Toronto by 15 times to reduce the area of "the smart city" of Alphabet

As it became known on November 7, 2019, the municipal officials who are responsible for development of coastal territories of Toronto made the decision to considerably reduce the area of "the smart city" of Sidewalk Labs. Initially "subsidiary" of the American IT giant Alphabet was going to master about 77 hectares on the bank of Lake Ontario, however got permission only to 5 hectares, The New York Times writes.

According to the edition, the discontent of the locals and experts anxious with plans of the company for collecting and use of personal data became the reason of adjustment of the project. Initially Sidewalk Labs was going to accumulate all data in completely autonomous data center that, however, did not suit the officials who were afraid of repetition of scandal with Facebook and Cambridge Analytica. As a result the developer made the decision to refuse initial model of work with Big Data, having declared determination to cooperate with the authorities.

Such compromise, however, pleased not everyone.

«
The best exit from current situation for Waterfront Toronto (the government agency which is engaged in development of coastal territories — an edition) will be to stop any relations with Sidewalk as soon as possible — said the local and the member of the group of BlockSidewalk Juli Beddous.
»

Sidewalk Labs already expressed intention to continue the project irrespective of scale. For this purpose, however, it should pass one more round of approvals and public listenings.[2]

2017: Construction of the hi-tech area

In October, 2017 it became known of plans of Alphabet to build the hi-tech area in Canada in which all spheres of life of people will control automated systems.

The Sidewalk Labs company entering into Alphabet which invests in it $1 billion will be engaged in project implementation. The first portion of investments directed to planning and testing of pilot developments made $50 million.

The coast of Lake Ontario where Alphabet is going to build the hi-tech area
The coast of Lake Ontario where Alphabet is going to build the hi-tech area

It is about creation of the "smart" town on the bank of Lake Ontario in Toronto. Sidewalk Labs won the request for arrangement of 12 acres (about 5 hectares) of the territory with perspective of increase in the area of development up to 800 acres (323 hectares). First the area of a futuristic zone will be 8 sq.km.

Sidewalk Labs submitted the 196-page document containing the large-scale ideas of the company concerning future appearance of the new area including high-speed ferries, parks which can be adapted to seasons, and robotic garbage trucks. For passenger traffic it is supposed to use self-driving taxi and buses instead of the individual transport, and bicycle tracks will be warmed.

Everywhere there will be a set of sensors and cameras for collection of information about flows of pedestrians and vehicles, pollution and a status of infrastructure. Drones will be able to deliver freights, for them will lay underground routes.

Financial Times  notes that preserving of confidentiality of these locals as technologies will control all spheres of life of people — from collecting of garbage to noise level in houses will be the main problem of the "smart" area.[3]

Creation of the area will demand a set of changes in the existing laws on construction, transport and power supply.

«
It is the test platform for new technologies which will help us to build more net, smart, eco-friendly cities — the prime minister of Canada Justin Trudeau who approved Alphabet initiative said.
»

You watch also Smart cities

Performance Indicators

2015: Google overtook Apple on capitalization and became the most expensive company in the world

Since the beginning of October when it was announced creation of Alphabet, its actions grew up for 20% — whether this proof that founders of Google made everything correctly.

Alphabet earned nearly 75 billion dollars in a year, and its operating profit was 23 billion. In spite of the fact that Google is the huge company in about tens of thousands of employees, it grows at rates to which many startups can envy — in the fourth quarter revenue of Google rose by 18%[4].

The facts are that Google still remains the chief search engine in the world, YouTube — the main video hosting, Chrome — one of master browsers, Android — the most popular mobile operating system with a huge separation from iOS and Windows. At Google it turns out to monetize traffic due to advertizing. But not only at the expense of it: two billion dollars of the company bring "other income", in particular, a subscription fee for use of cloud services and app store of Google Play.

You should not revaluate news about change of the leader in capitalization: actions and Google, and Apple remain one of the most attractive securities at the exchange. The character is important: from now on the most expensive company in the world makes not the innovation and elite products, but what at least once in day nearly a half of the population of the planet uses.

Notes