Mega-cap companies don’t usually offer startup-like growth. That’s why Alphabet Inc(NASDAQ:GOOG) stock is so special. After a solid earnings report, Google stock gained more than four percent. Google’s Class A shares have surged past the $800.00 mark.
Expectations were already high before Google stock earnings, yet the company managed to beat both top- and bottom-line estimates. The best part is that despite being the incumbent in the Internet industry, Google’s growth rate was no less.
Driverless cars are expected to change the entire transportation industry in the near future, and almost every automaker and many tech giants are in the race. Alphabet is currently testing its autonomous driving systems in Mountain View, California; Austin, Texas; Kirkland, Washington; and Phoenix. Google’s driverless cars have self-driven more than 1.6 million miles.
Why would Google succeed in this highly competitive future industry? Well, its approach is quite different from most others. While many automakers are fitting advanced driver assistance systems into their vehicles, Google is going after fully autonomous cars. Its in-house two-seat driverless car doesn’t even come with a steering wheel.
According to Alphabet’s chief financial officer, Ruth Porat, “We’re focused on fully-autonomous cars because in early testing we saw the risk of depending on drivers to remain engaged once you give them the option to switch off.” (Source: “Alphabet Q2 2015 Results – Earnings Call Transcript,” Seeking Alpha, July 28, 2016.)
The post Alphabet Inc: Why Google Stock Is Still the Best Bet in the Internet Industry appeared first on Profit Confidential.