Tag Archives: Waymo

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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Apple have a cash hoard of $250 billion and enough software know-how to build great self-driving car technology

Apple is a big company with a market cap of $783,07 billion, and most of its success is coming from its flagship iPhone. CEO Tim Cook in May noted a «pause» in iPhone sales but Apple is expected to come out with a new and expensive iPhone in a few months.

It will be a super premium tenth-anniversary iPhone costing $1,000 or more, but that will not help the sales of their iPhone at the moment. In addition, the pause could also be delayed. Maybe into a new fiscal year.

 

 

What is an electric car actually? It is a smart phone with four wheels, because there aren`t much difference from an electric car and a smart phone. And who can enter the auto industry better than Apple?

Apple have everything they need to design a brand new electric car. They have more than enough much-needed software know-how and the company is already working with car companies on CarPlay. They have $150 billion of net cash and $50 billion of free cash flows annually.

Apple compete with Google and Microsoft and it will be very disruptive when they all enters the car industry with its brand new electric cars.

Whats funny to see is that these companies are not car companies but rather software companies. It speaks for itself. Apple is a strong brand with many fans worldwide, and Apple Car can take a large share in the auto market.

Tim Cook said in June this year that Apple has autonomous car ambitions. Apple is working to build self-driving car technology, referring to the endeavor as “the mother of all AI projects”.

But it seems like Google are leading. In December, Google launched Waymo, wich is “a new way forward in mobility.” So far, they have more than 2 million miles of public-roadway testing for its vehicles.

What will happen if Apple buy Tesla? They could quickly become a leader, but Elon Musk laughs off the idea of Apple buying Tesla. But earlier this year, Musk said “Never say never to Apple buying Tesla”.

Apple have a cash hoard of more than $250 billion, and that is giving them the opportunity to spend some of it for acquisitions or buybacks.

We know that Elon Musk earlier this year had a meeting with acquisitions chief at Apple and news regarding this case would be a bomb in the stock market.

Apple Inc is expected to report earnings on Tuesday August 01 after market close. Earnings forecast for the quarter is $1,57 versus $1,42 for the same quarter last year.

 

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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