The self-driving car project is Alphabet's most anticipated moonshot investment (Photo : YouTube/Google Self-Driving Car Project)
Alphabet is the proud owner Google, but its parentship over its other assets is not working so well as the moonshot projects are on a constant decline in terms of profit and success. A recent roundup by business analyst points out that Alphabet is losing the money, but it will not give up.
Google is not doubt on the top of internet advertising niche, but all the profit from this hard earned money is compensating for the loss of moonshot investments like self-driving car, high-speed internet network, gadget-making, and anti-ageing efforts are clearly not exploding with success, USA Today reported.
The news site reported that Class A shares of the Google parent plummeted 6 percent after hours to $732, where during the last 12, Alphabet's Class A shares had rallied 44 percent. Other projects, combined generated $166 million and the loss just turned from $802 million to $633 million, which is giving the investors hard time to keep sailing with Google.
According to Financial analyst Colin Gillis, Alphabet is not going to quit pouring money over moonshot projects but this strategy is leading the tech titan towards a declining slope net profit when comparing revenue with investments and losses. However, Alphabet has chosen its course to never curb its spending over its futuristic inspirations.
Critics may think that Alphabet is blindly following this path, but the company's Chief Financial Officer Ruth Porat insists that they are "thoughtfully pursuing big bets." However, her claims were unfounded as the financial results reported by the Big A speak differently; these statistics were the second review since Google spawned out its own parent.
Previous Thursday's outcome showed Alphabet's first-quarter performance in the market: $4.21 billion or $6.02 per share. In 2015, these figures were $3.52 and $5.10 respectively. "The stock is just being a little 'Googly. There is nothing wrong with the company," Investor Place qouted Gillis as saying.
Alphabet's core business is internet advertising run by Google, but it's taking the search giant more monetary investment to attract more ad clickers. The reason behind this change people's growing use of mobile phones compared to the desktop platform, but the company is also yielding to the change but shifting its interest in the smartphone arena.
The following videos show one of Alphabet's moonshot investment, self-driving cars, which are nearly ready to hit the road.
