For Google(Alphabet), which has been established for more than 2 1 year, this achievement has different significance.
From: 9 to 5 Google
For Google, the biggest support for its market value exceeding one trillion dollars actually comes from its business income and profitability, which can be concluded from the latest quarterly financial report released by Google (2065438+0910).
According to the financial report for the third quarter of 20 19 released by Google's parent company Alphabet as of September 30, 200019, the total revenue of Alphabet in the third quarter was $40.499 billion, an increase of 20% compared with $33.740 billion in the same period of 20 18.
For a giant like Alphabet, this year-on-year growth rate of revenue is steady. Not only that, from the analyst's point of view, the total revenue of Alphabet in the third quarter actually exceeded expectations-according to the data provided by Yahoo Finance Channel, 32 Wall Street analysts had expected Alphabet's revenue in the third quarter to be 40.32 billion US dollars.
In addition to revenue, the net profit of Alphabet in the third quarter was $7.068 billion, which was 23% lower than that of $96.5438+92 billion in the same period of 2008. However, this is because the revenue cost, R&D expenditure, sales and marketing expenditure, general affairs and administrative expenditure of Q3 Alphabet are all higher than that of 20 18. Therefore, it is not difficult to understand that the net profit is lower than that of 20 18.
It can be seen that from the overall management level of Alphabet, it is still in a state of steady development and is actively seeking change.
From a business point of view, the absolute core of Alphabet is Google, and the core of Google is advertising. According to Q3 financial report, Google's advertising revenue (composed of website revenue and network revenue) in the third quarter was $339160,000, which was higher than $289.54 million in the same period of 20 18, with a year-on-year increase of 17%, accounting for 84%.
For this achievement of advertising business, Dan Morgan, senior manager of Synovus Trust Co, commented:
In addition to the stable cash cow of advertising, Alphabet (Google) is also actively exploring new businesses.
According to Q3 financial report, Google's other revenues (including cloud products such as hardware and Pixel phones) increased by 39% in the third quarter, reaching $6.43 billion. Although Google did not point out the specific income of hardware products and cloud products in other income, the income of cloud computing business is undoubtedly the focus.
Although Google Cloud still lags far behind the leading Amazon and Microsoft, Lei Feng. Com understands that during the period from February 20 18 to July 20 19, its revenue operation speed doubled from/kloc-0 billion dollars to 2 billion dollars per quarter. In addition, the company expects similar growth next year, as it will continue to invest a lot of resources, including tripling its sales force and expanding its Google Cloud Health division.
Until 2020, Google Cloud is still doing a lot of work for its business expansion. At present, the latest heavyweight progress is to reach a cooperative relationship with IBM (see Lei Feng. com's previous report) and launch the IBM Power system on Google Cloud in order to attract more corporate customers.
On the whole, Google (Alphabet) has shown a steady and changing state in its overall operation. On the basis of stable advertising revenue, it continues to exert its strength in new businesses such as cloud computing, which is quite old-fashioned and innovative. Google's performance at the financial report and business level has laid a solid foundation for its recognition in the capital market.
In addition to performance, the outside world's imagination of Alphabet's value space comes from the major changes of Alphabet at the personnel level to some extent.
20 19 12, Alphabet announced a major personnel change in official website, namely, Larry Page and Sergey Brin, two co-founders of Google, resigned as CEO and president of Alphabet respectively; Larry Page was succeeded by Sundar Pichai, the current CEO of Google. That is to say, Sundar Pichai became the CEO of both Alphabet and Google.
Meanwhile, Larry Page and Sergey Brin stayed on the board of Alphabet and controlled the company through their respective shares. They wrote in an open letter:
This change made 48-year-old Sundar Pichai the helm of the alphabet empire.
Sundar Pichai's career at Google (Alphabet) is 16 years; He started as an engineer and product manager and gradually took charge of Google Chrome, Chrome OS, Android and other businesses. On August 20 15, he was appointed CEO of Google in the company reorganization, joined the board of directors of Alphabet on July 24, 20 17, and was finally appointed CEO of alphabet in February 20 19.
For Alphabet, which has entered a mature and stable period, Sundar Pichai is undoubtedly an ideal helmsman.
He grew up with Google, understood Google culture and management mechanism, and made great contributions to Google's business growth. But more importantly, as a responsible and gentle manager, Sundar Pichai has done a better job than the two Google founders in dealing with the complicated management affairs that Alphabet has to face-whether it is the earnings conference call or the hearing of the US Congress, the smiling Sundar Pichai usually replaces Alphabet.
Image from: NDTV
Some outsiders are optimistic about Sundar Pichai's latest role.
Some analysts believe that Sundar Pichai may further boost Alphabet's share price by increasing repurchase or possibly paying dividends for the first time in the company's history; After all, as a professional manager, most of Sundar Pichai's bonuses are tied to stock price performance.
It is worth mentioning that Lei Feng. Com observed that since Sundar Pichai was officially appointed as CEO of Alphabet on February 3, 20 19, the share price of Alphabet has risen from 1294.74 dollars on that day to 10/458 dollars on October 6, 2020.
This achievement proves that Sundar Pichai, as a business leader, has blessed the market value of Alphabet.
Here, there is a question worth pondering:
First of all, trillion market value is a digital milestone at the market value level, so it is also the market's recognition of a company at the value level to some extent. As a generation of technology giants, Alphabet has gained this recognition by realizing trillion market value, which is naturally a good thing for Alphabet, which was founded 2 1 year ago.
It is worth mentioning that although Alphabet is the fourth American technology company to enter the "trillion-dollar market value club", it is the one of the four major technology giants that reached the trillion-dollar market value as soon as it went public-which is also a point worthy of pride.
Of course, from the perspective of the future development of Alphabet, the trillion-dollar market value is not the end, and it should never be the goal. From a longer-term perspective, how to achieve sustainable growth of its own business in the future and maintain strong business competitiveness is what Alphabet really cares about.
From the perspective of product layout, Alphabet has hundreds of millions of user products such as Google search, Android, Gmail and Youtube, and is one of the largest product systems in the world; In terms of technical capabilities, Google has become a well-deserved AI boss with its all-round layout of "hardware+software+algorithm+data+open source ecology" in the AI field; From the perspective of architecture and management, Alphabet is becoming more and more mature. ...
It seems that Alphabet is good enough-but I have to admit that this giant enterprise with more than 654.38 million employees is also facing many crises.
For example, the fierce conflicts between the internal management and employees of the company, the inevitable diseases of large companies, and the anti-monopoly pressure from various external regulatory authorities are all "iron rings" on Alphabet's head, which always hinder the progress of this technology giant.
But in any case, with Google as the core carrier, Alphabet, like technology giants such as Apple and Microsoft, has become one of the most influential companies in the world. As Michael Lipert, manager of Baron Capital Opportunity Fund, a shareholder of Alphabet, said: