Tag Archives: FANG stocks

Waymo can increase Alphabet`s revenue in the future

Alphabet Inc is expected to report earnings on Monday 29 April 2019. Many people doesn`t know what Alphabet Inc is, but the all know what Google is. On August 10, 2015, Google Inc announced plans to create a new public holding company called Alphabet Inc.

Alphabet would be created to restructure Google by moving subsidiaries from Google to Alphabet, narrowing Google`s scope. The company would consist of Google as well as other businesses including X, Capital G, GV, Sundar Pichai and so on.

When Larry Page announced his plans to create the new holding company he described the planned holding company as follows;

Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main internet products contained in Alphabet instead. Fundamentally, we believe his allows us more management scale, as we can run things independently that aren`t very related.

The FANG stocks have mixed results since the last earnings. Facebook is up 11%, while Amazon is down 4% and Netflix is down 2%. What about Alphabet on Monday?

They have a great momentum and can beat earnings expectations also this time. Alphabet Inc were beating Wall Streets earnings consensus in all four quarters last year. alphabet Class A and C shares is up 15,5% and 15,4% last 12 months. Thats nearly twice as much as the S&P 500.

In Q4 last year, revenue grew 21,5% to $39,28 billion and EPS skyrocketed 31,6% to $12,77.

The reported earnings will be negative effected by a 1,5 billion euro, or $1,7 billion, fine imposed by the European Commission earlier this year. The European Commission said that Google engaged in anticompetitive practices related to agreements it had in place with Adsense for Search Partners.

Expect Google to appeal the ruling as it has done is similar cases.

Googles ad business is important for Alphabet Inc. It accounts for about 83% of Alphabets total revenue. But that will change very soon because they will earn money from other growth businesses like Vaymo and Google Cloud, their hardware and Google Play.

In January this year, they said in their press release that they will build «the world`s first factory 100% dedicated to the mass production of L4 autonomous vehicles.» L4 vehicle is a vehicle that can drive itself, and to reach that goal they have partnered with Magna International.

Waymos self-drivning systems into vehicles will include the Jaguar I-Pace. Thats something to really look forward to.

Alphabet Inc will report earnings on Monday 29 April after market close.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Microsoft and Baidu plan to explore opportunities to deliver connected vehicle solutions

Microsoft is still among the biggest corporations, but far away so «hot» as the FANG stocks that everyone is talking about at the moment. With its market cap of $569,85 billion, Microsoft is still among the best and biggest companies.

Microsoft Corporations is expected to report earnings on Thursday after market close. The report will be for the fiscal Quarter ending June 2017. Earnings forecast for the quarter is $0,71 which is a bit more than last years earnings of $0,69 for the same quarter.

 

 

IBM is trying to give its cloud business a boost, but Microsoft`s open cloud format seems to be much better. A business that is giving Microsoft a huge upside. Azure and Xbox is two drivers for Microsoft at the moment, but there is more.

Who is talking about LinkedIn? Only a few. Reid Hoffman sold his «baby» to Bill Gates and Microsoft acquired the professional networking platform in an all-cash deal worth $26,2 billion in December last year.

Microsoft`s CEO Sataya Nadelia said at that time “The deal would bring together the worlds leading professional cloud with the worlds leading professional network.”

In addition; Microsoft wants to compete with Apple and Alphabet in delivering its self-driving car platform. They will collaborate with China`s search engine giant Baidu to use its Azure services for those self-driving cars.

Microsoft said in a press release on July 18, that Baidu and Microsoft plan to explore opportunities to deliver connected vehicle solutions and unique customer experiences that aim to digitally transform the autonomous driving industry.

Microsoft is focusing on cloud-connected car scenarios via its «Microsoft Connected Vehicle» strategy, and the company is aiming to get more vehicles to use their cloud services, like Office 365 and Azure, instead of using Microsoft itself inside cars via «Windows Automotive.»

Other Automotive brands are also interested in Microsoft`s cloud business. BMW and Volvo have both announced partnerships with Microsoft for its cloud-business car services.

Microsoft closed its previous trading session at $73,86 and is expected to report earnings on Thursday after market close.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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