Yesterday, Google announced parent company Alphabet as at December 31 in fiscal year 2015 quarter and annual earnings. Judging from the latest earnings, advertising is still the core of Google make money business.
In the core business of advertising under the premise of creating vast wealth for Google, Google can ease of play with other projects, such as those unprofitable non-core projects.
Perhaps because of advertising backing this cash cow, parent company Google Alphabet on a conference call with analysts, said the company will not be profitable this year and more crazy non-core “Moonshot” spend more money on the project. So we can understand, Google is rich wayward live examples?
What is a MoonShot project of Google, has nothing to do with the company’s core business of innovation projects, like Google Glass, unmanned vehicles, drones, Internet balloon Google x-lab project, and to extend human life subsidiary, Calico, belonged to the Moonshot project.
In 2014, Google for “fun” projects, lost $ 1.9 billion, by the year 2015, these items cost Google $ 3.6 billion.
In principle, other companies should cut it a profitable business investment. But Google would not. CFORuth Porat has even repeatedly in a conference call the company warned that spending will increase this year. Moschino iPad Case
Increase in expenditure is, Google will expand in the United States’s fiber-optic Internet service. Citigroup analyst Mark May said the expansion of optical fiber project could cost tens of billions of dollars. His Alphabet capital expenditures this year were expected to rise by about $ 2 billion, amounting to 12 billion dollars.
In addition, the Alphabet is committed to expanding its fleet of unmanned car business, the business is currently in California and tested prototypes in Austin, Texas.
Google CEO Sundar Pichar also said it will increase investment in Internet business. Sundar Pichar, said Google’s cloud computing business will work with virtual reality and artificial intelligence, becoming an important investment in 2016.
Last year, Google in addition to burn money in UAVs, optical networks, also Nest in the smart home, Verily the life sciences on projects such as investments.
Nest of a smart home company is established in 2010, 2014, acquired by Google. Nest launched smart home hardware products like a disc with a monitor, users just need to shout “OK,Google” or using the remote App to control the home environment of temperature and humidity.
Verily the life science belong to the Google x, independently from the x lab last year. On December 7, 2015, Google’s life science project was formally named Verily. Verily have begun to develop several projects, including Switzerland Novartis to develop intelligent built-in glucose sensor lenses.
Those operations are expected this year, continuing the great task of burning money in the end, even as the global economic slowdown. Analysts do not think the Alphabet will be squeezed, United States economic growth in the fourth quarter of last year was only 0.7%.
”Even in the difficult macroeconomic times, Google also will not hesitate to invest. “Macquarie Securities analyst Ben Schachter said.
Alphabet of the two executives did not mention the economy or express concerns about slowing economic growth. Moschino iPad Case
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