lundi 26 octobre 2015

Alphabet prepares for $5 billion stock buyback

money cash frozen freeze ice snow money

With all this cash lying around, Alphabet is planning on buying back shares of its own stock, The Economic Times has reported.

According to the report, high profit which the company had in the third quarter of this year, has prompted it to announce it would give investors some of the money.

"They’re growing up", The Economic Times cites Colin Gillis, an analyst with BGC Financial.

One of the bigger issues with Google is the fact that it has a lot of companies and firms that are completely unrelated to its core business, like self-driving cars, pharmaceutical companies and whatnot.

Those firms, also called "Larry Page’s moonshots", have had investors questioning how profitable they are and how much the company is really spending on risky business ideas. With Google getting a parent company, and leaving only the core business to itself, the financial results will be clearer.

"Products like Search, Android, Maps, Chrome and YouTube each have over a billion users already, and Google Play crossed that milestone this quarter as well", said Sundar Pichai, Google’s new chief executive. |But what’s most exciting is that we’re just beginning to scratch the surface".

|This is the appetizer, and the main meal comes next quarter when they report the new corporate structure", said Ben Schachter, an analyst with Macquarie Securities.

Typical of a company filled with engineers, the buyback was encased in a riddle, with an exact value of $5,099,019,513.59 -- which mirrors the square root of 26, as in the 26 letters of the alphabet.

Published under license from ITProPortal.com, a Net Communities Ltd Publication. All rights reserved.

Photo Credit: Filipchuk Oleg/Shutterstock



Aucun commentaire:

Enregistrer un commentaire