Google’s parent company, Alphabet Inc. reached a new milestone on Monday by touching US$1,000 share price for the first time. The shares of the technology giant closed at US$1,003.88, up by 0.78%, or US$7.76. It can also be said to be a 37.9% rise since August 2015, when Google split off its earlier stage ventures from the core Internet business to become Alphabet Inc. With this achievement, the company joins the list of elite companies, including e-commerce giant Amazon.com Inc. and Warren Buffett’s Berkshire Hathaway Inc. Industrial experts believe that the rising stock prices are beneficial for companies, however, the high prices may make their affordability difficult for individual investors.
Alphabet Braces Itself to Hedge against Threats to Web Search Business
Alphabet Inc. has been strategically investing money in its businesses to hedge against any threats to its core web search vertical. The company has shown positive growth in cloud computing and artificial intelligence business. Besides this, the organization’s primary ads business is also expanding, dodging any hindrance from the proliferation of mobile devices. Verily, the medical business, closed a US$800 mn outside investment from the Singapore-based company, Temasek. While the company is boosting investments in these businesses, Alphabet has reduced funds for its fiber broadband service.
As per a note from Morgan Stanley last month, Waymo, the self-driving car unit by Alphabet, is in the position to lead the market for autonomous transit. Analysts estimate the unit to have a valuation of around US$70 bn by 2030 – a prospective value that is not included into the current share price of Alphabet Inc.