If you own a mutual fund or index fund and it does not have Alphabet in it, then you should be looking for an alternative fund. One of the reasons to own it is Alphabet which owns Google made $9.4 billion in profit in one quarter. In an article by Paresh Dave and Arjun Panchadar of Reuters, Alphabet achieved better pricing on ads and saw unrealized income from start up investments.
Alphabet makes its money from advertising and point and click ads. The ads come after the clean page search engine, YouTube videos, millions of partner apps and websites. World wide ad sales increased to $31.1 billion. In terms of the mobile app store such as cloud computing services and consumer devices the number was $4.4 billion.
Another aspect to Google is through its venture capital arm with investment in companies such as Uber Technologies and Waymo – the self driving car ideas.
Linking to dividend paying stocks, Alphabet continues to generate billions of dollars in revenue and most people expect what we consumers are doing now, we will continue to do next year. If we do similar things, use Google to search and find information we can use, then advertisers will continue to use Alphabet as a primary adverting. Along with the ads, Google does many other things and most of us will use one or more of their services. If you examine the number of people the company has and the few fixed expenses, it is one of the reasons why owning Alphabet is needed in your portfolio.
There are more questions than answers, till the next time – to raising questions.