Share price: $920.67 P/E: -
Alphabet, which owns Google and YouTube, grew revenues by 22% in the fourth quarter of 2016 to over $21bn, and reported margins of 31% while still spending billions of dollars developing everything from self-driving cars and other artificial intelligence applications to researching a cure for ageing.
At the end of the last quarter, Alphabet had cash and marketable securities of $86.3bn.
CEO Sundar Pichai said that 2016 had been the year that artificial intelligence “became central to who we are as a company and the products that we built”, and that Alphabet had had more than 350 launches powered by machine learning across areas like Search, Maps, Messaging and Google Play.
Coronation's Surve says there are still big opportunities to increase advertising spend. “People are spending a lot more time online but advertising hasn’t quite caught up.
“Google is the dominant search platform, it owns the leading video platform, and advertising is becoming more targeted and measurable,” she says. It has significant competitive advantages and uses search histories and query logs to improve its search functionality. “And with better product you get more people searching so it is a virtuous cycle.”
“Google is the dominant search platform, it owns the leading video platform, and advertising is becoming more targeted and measurable.”
Sundar Pichai CEO of Alphabet