Alphabet’s investment in tech startup is causing headache for the firm
Google’s parent company, Alphabet’s investment initiatives are proving to be a headache according to the results of its recent quarter. Its revenue for the quarter came out to be $ 40 billion with a 20% increase as compared to the last year. But it is still less than the prediction made by Wall Street owing to its awful performance in investment. It reported a loss of $ 1.5 billion due to their improper investments.
Alphabet has made investments in Uber, LYFT and Slack in recent times, but the exact source of loss is not made clear. Alphabet started to produce gain and loss reports in its investments from investments only from last year. Apart from the hit in the investments, the quarter has been an encouraging one for the company. Its advertising market remains to the trump card for money-making. It has not depleted even after the imposed strict scrutiny in recent times.
The revenue from the advertising market has increased by 17 % as compared to the same period of last year. It has reached the mark of $ 34 billion during this recent quarter. The company has recently faced investigation on trust issues from attorney generals of 48 states. It also had to pay a massive fine to the European Union due to the same problem. Google’s other services showed an increase of 39% in revenue this year. It is mainly boosted by the sales on cloud services, the popularity of which is growing exponentially.
Sundar Pichai said that the company had obtained the necessary certification regarding cloud computing services. It will help the company to get big government cloud contracts. Currently, Amazon and Microsoft are the big players in this market. Ruth Porat, the CFO of Alphabet, said that they are focusing on making investments in artistic talents and infrastructure to bring the growth of the company. They are explicitly targeting Cloud and Machine learning.