About the Alphabet Group:
Alphabet is basically a holding company that manages 6 principal activities. It notably includes the Google search engine, the YouTube website and the Gmail instant messenger. Alphabet also develops home automation solutions and undertakes research and the development of bio-technologies, offers Artificial Intelligence research services and investment services. Finally it operates a fibre optic internet access network under the brand Google Fiber.
Alphabet’s main competitors:
Alphabet was created by Google in order to separate its internet and search engine services from the rest of its structures. The company is now involved in various fields of activity such as connected objects and biotechnology. The competitors that Alphabets faces therefore vary according to the sector.
As far as search engines are concerned, Google remains the leader in the world. It competes with Yahoo, which is, so far, the only serious competitor of the group along with Chinese Baidu and Bing.
The sector of home automation and connected objects gives Alphabet more trouble, since it has to compete with some of the giants of technology such as Intel, which is still the undisputable leader in the world, as well as Microsoft and Cisco.
In the field of biotechnology, Alphabet competes with Gilead Sciences, Novo Nordisk, Allergan and Amgen and is struggling to position itself in the ranking of the 10 leaders of the sector.
To effectively trade Alphabet’s shares, it is highly recommended to closely monitor the news and the results of all these companies and verify the positioning of this entity in each market.
Alphabet’s main partners:
In 2016, Alphabet’s health subsidiary joined the pharmaceutical company Sanofi, in order to create connected objects in the field of the treatment of diabetes.
As part of its work on autonomous vehicles, Alphabet has also created certain strategic partnerships with car manufacturers such as Chrysler in 2016.
Always in 2016, Alphabet’s health subsidiary joined the GlaxoSmithKline laboratories in a joint venture whose goal was to create electronic implants to treat some chronic diseases such as diabetes, arthritis and asthma.
Analysis of the Alphabet share price:
The Alphabet Company share price is currently quoted on the Nasdaq Global Select Market in the United States. It is also incorporated into the Nasdaq 100 American stock market index.
Introduced onto the stock markets in April 2014, Alphabet shares are following a fairly neutral trend which is however marked by numerous micro-movements. We particularly note an interesting rise in July 2015 which marked the beginning of a rising trend that continues today.
Important stock market data about Alphabet shares:
You have just read some essential information regarding the Alphabet share price such as the activities exercised by this American Group and a historical technical analysis of its rate. Although this information will of course be extremely useful for the implementation of your trading strategy it is also essential that you learn other more general stock market information relating to this asset. We will therefore terminate this article by examining certain key figures and other important information about the position of this asset and its issuing company on the stock market as compared to other comparable assets.
- In 2017 the Alphabet Company boasts a stock market capital of U.S. $ 652,415.11 million.
- The number of shares issued by the Alphabet Company and currently in circulation on the stock markets is around 643,856,000.
- The share price of the Alphabet Company is currently quoted on the Global Select Market of the Nasdaq All Markets stock market in the United States.
- The Alphabet Company shares are also included in the Nasdaq 100 American stock market index so therefore the company is one of the 100 new technology American companies with the highest stock market capital.
- Shareholdings in the Alphabet Company are composed as follows: 2.66% by The Vanguard Group investment fund, 2.21% by the FMR LLC investment fund, 1.61% by the State Street Corporation investment fund, 1.42% by the T Rowe Price Associates investment fund, 1.27% by the BlackRock Fund Advisors investment fund, and 0.64% by the J P Morgan Investment Management Company. The rest of the shares are floating and therefore are traded freely every day on the stock markets by individual or institutional investors.
The advantages and strong points of Alphabet shares as stock market assets:
The bullish strategies on the Alphabet share price are increasingly numerous over the long term due to the advantages offered by this stock market asset. Here we offer you the opportunity to learn about the strengths and advantages offered by this group in detail.
Firstly, the Alphabet Group, thanks to Google, is actually the company that dominates the online search sector as well as the sharing of video content, online advertising, mobile operating systems and the use of web browsers. Alphabet also benefits from a great diversity of connected and non-connected products and services which has enabled it to position itself in numerous sectors.
The most profitable activity of the group remains however online advertising with the income generated by Google through this advertising. This income reached over 95 billion dollars in 2017 which represents 86% of the total turnover of Alphabet. Google alone generates over 32% of the total digital advertising sector revenue in the United States; this is equivalent to twice the amount of Facebook. On the international level, Google generated over 32% of the total digital advertising income sector in 2016. Alphabet achieved this through its Adwords, Adsense, and YouTube channels plus the Android operating saystem.
Concerning internet search online, Google Search remains the most popular search engine worldwide for finding information on the internet. This search engine which is the foundation of the company’s success in fact holds 73% of the market share and achieved 92% for the mobile sector in 2018. This dominance of Google in online search is even more pronounced in Europe where it holds over 90% of the combined market share.
The Android mobile operating system is of course a major strong point of the Alphabet Company. Over recent years this has experienced increased interest from users and has become the most popular mobile OS throughout the world. It is used on numerous devices from major brands such as Samsung, Huawei, Xiaomi, OPPO, Lenovo and LG. In total Android powered over 74% of the smartphones on Earth in 2018. Due to this singular popularity of the Android system Alphabet has also been able to develop the popularity of its other products and services such as Google Play, Google Music, Chrome and Google Search.
Due to holding the position of Google as leader in these different sectors, the Alphabet Group benefits from numerous advantages against the competition. Firstly, Google records and analyses a huge amount of information about its users and their online search habits. Using this information the group is able to target relevant advertising and adapt products to user requirements far better than its major competitors. Also, its position as leader enables Alphabet and Google to increase consumer popularity through their excellent brand recognition and reputation. Alphabet therefore is in a very strong position regarding its clients, its competitors and its suppliers.
The disadvantages and weak points of Alphabet shares as stock market assets:
It goes without saying that the Alphabet Group does not only have advantages and also has certain disadvantages and weaknesses that we will now examine in detail.
Firstly, the group has experienced a lot of criticism due to patent infringements, author copyright and user privacy infringement litigation.
In fact, this giant technological company draws a lot of attention from the media and its competitors and is often criticised for its operations and policies.
The Alphabet Group is notably in competition with many other technological companies and the patents are often used in numerous products and software. To be able to develop new products and software it is therefore necessary to develop a strong portfolio of patents. Google has already been accused and convicted for a number of patent infringement cases which has led to the payment of hundreds of millions of dollars in damages and interest.
This abuse also concerns copyright. In fact, several lawsuits have already resulted in convictions against Google for infringement of copyright. These convictions have of course had negative repercussions for the image of the Google and Alphabet brands. The same is true relating to private details of its users. Google and Alphabet base their strategies on the collection, storage and processing of all information collected on the users of its products and services and these users are not always informed of modifications to the confidentiality regulations of these products and services. The company is therefore often reprimanded by governments.
The image of the Google brand, and therefore that of Alphabet, has also been tarnished by some tax evasion scandals. In fact, through the use of various financial devices used for paying less tax, notably in Europe, Australia and other countries, Alphabet has reduced their costs which has led to loud criticism from the public.
It is therefore the negative publicity that currently poses the greatest threat to the potential of the Alphabet Group. The infractions and abuse that the company has displayed has led to legal problems that weigh heavily on the finances of the company.