04.12.2019, 02:43 pm
Business is running great for Alphabet: The Google mother continues to earn a lot of money and is currently the third most valued listed company after Apple and Microsoft. As an ad-supported search engine Google works great. But as the image of Google, the two founders Sergey Brin and Larry Page painted years ago, the company does not work.
Brin and Page are in love with the idea that Google could be much more than a web search engine. In her vision of the company, web search turned into a cash factory that provided the money for truly earth-shattering projects – the Moonshots. Alphabet should become a company that improves, extends or even saves the lives of millions of people from medicine to autonomous driving. Google was a small light in this vision – a corporate subsidiary among many.
Google earns more than 99 percent of alphabet sales
Four years after the founding of Alphabet as parent company of the holding company, Google still earns more than 99 percent of the Group’s revenues. In addition, the corporate bets of the group drove a total loss of $ 3.4 billion in 2018, apart from Google’s ad-supported core business. In the most recent quarter, the loss was $ 1 billion.
The recent move to make Google CEO Sundar Pichai in addition to the alphabet boss while retiring the two founders , underlines this development – and in fact questions the entire holding structure of Alphabet, as a high Google employee of Bloomberg is cited ,
Meanwhile , even an alphabet manager speaks in connection with the autonomous driving of a hype . Google’s many Moonshot projects have not changed the world yet – visionary products like the Google Glasses, which should change how people interact with computers, have become a niche B2B product for the time being.
Deepmind and Waymo have potential
In the field of machine learning, Alphabet’s daughter Deepmind is the world leader. Whether the Group will eventually make significant money outside the core business is still open. Google’s autonomous driving company, Waymo, is also considered to be a technology leader among experts – and Google benefits from its expertise in machine learning. With the help of the Waymo technology could still strong competition with Uber arise – especially as the Fahrdienst Group is struck.
But all this shows that it remains difficult, as a tech company, the area has revolutionized – as in the case of Google Web search – to conquer other areas. To this day, Google essentially remains a web search engine with some web services such as calendars and e-mail around it, all of which earn money through context-sensitive online advertising. For the revolution in medicine we may have to wait for new foundations.