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Alphabet, 7.5 billion of profits but misses market expectations

In February, for a few days Alphabet has occupied the first position in the world among the companies with the highest market capitalization. Google's parent company at that time had passed Apple, which has, however, resumed the scepter after a short time. In recent Alphabet hours reported quarterly results for the first quarter of 2016 missing market expectations, which has been shifted slightly and further the stock value of the company.

The company is still able to monetize - and long - thanks to its business in the market of online advertising, where it is still Google, and not satellites projects, to generate the vast majority of the proceeds. Alphabet has generated $ 7.5 billion profit on revenue of 20.26 billion dollars, whereas analysts had expected slightly higher numbers: 7.96 billion dollars in profits on revenues of 20.38 billion.

It is the cost-per-click, basically the money that Google earns on the decline for each click on the advertising banners of its own circuit. Compared to the first quarter of last year, the decline was 9%, confirming a trend that has been ongoing for quite some time now. One related problem for society since, thanks to increased via mobile device users, reflecting the clicks are also increased, by 29% accuracy, and grew revenue.

Continued uncertainty on so-called "other bets" Alphabet, or the satellite projects like Nest which currently erode part of the company's profits. Among these it was reported an operating loss of $ 802 million compared to a turnover of 166 million. Last quarter the numbers were 80 million in revenue on a loss of 633 million, so there is an increase in both values, with the losses that become even more significant.

Bet today on the technologies of tomorrow is not yet a wrong strategy, and Alphabet is not the only company to do so. Facebook for example has bet on Oculus VR, investing $ 2 billion, and Google has done so by investing in many other technologies. By the way, Alphabet can afford to "lose" almost a billion dollars in "new bets", since the business behind Google enables you to remain still firmly in the black.

The last twelve months have been very positive for Alphabet. As we said just above was for a certain period of time before companies such as market capitalization, and since last April has registered an increase of 39% on the value of the shares on the stock exchange. The growth was a little 'stranded in the last three months, with a decline of about 6%, but financial results have still remained very strong although not reaching, sometimes, the expectations of analysts and investors.

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