Summary

Google (GOOG) was bought by Alphabet in 2015 as part of its restructuring of the company

Alphabet’s Q2 Earnings were released on July 28 showing the company’s strong growth

Alphabet’s ‘Moonshot Projects’ have been costing more than the revenue they’ve been bringing in

Alphabet secured permission from the FAA to test drones at an FAA testing site

Alphabet’s Verily and GlaxoSmithKline (GSK) are working together to form a bioelectronics company

I Know First’s algorithm is currently bullish on GOOG in the long term

Overview of the Company

Have you ever heard someone say “Why don’t you Bing it?” No? That’s because Google is the superpower of search engines and is used worldwide. A subsidiary of Alphabet (GOOG, GOOGL), Google experiences upwards of 40,000 searches every second, as opposed to the 10,000 per day that the search engine processed back when it was established in 1998. Google also creates internet and computer software, most notably Adwords, an online advertising service. Among other innovations out of the “Googleplex,” are the likes of the operating system software for Androids, the Google Glass, and many other products.

Google was founded in 1998 and its IPO took place in 2004. The company was independent until 2015, when it announced restructuring of the company, a facet of which was that Google would be acquired by Alphabet, Inc. later that year. Since October 2015, the company has been led by CEO Sundar Pichai. Pichai joined the Google team in 2004 as a head of project management where he was part of the innovative team that brought the world the likes of Google Chrome, Chrome OS, and Google Drive. With an innovative mind like that leading the way, Google can only be expected to continue to grow into more of an internet and tech giant than it has already proven to be today.

Second Quarter Earnings

On July 28, 2016, Alphabet, Google’s parent company, released its second quarter financial statements for 2016 which ended on June 30. In their press release, CFO of Alphabet Ruth Porat noted that "Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video. We continue to invest responsibly in support of our many compelling opportunities.” While analysts expected a revenue of $20.76 billion, Google’s revenue surpassed expectations and increased to $21.5 billion, up 6% from the first quarter. Additionally, diluted EPS for both common and preferred stock was $7.00.