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{{Infobox company
{{Infobox company|name=Alphabet Inc.|logo=Alphabet Inc. Logo PNG|founders=Larry Page, Sergey Brin|founded=October 2, 2015|hq_location=California, U.S.|website=abc.xyz|logo_size=109px|subsid=Calico
| name = Alphabet Inc.
CapitalG
| logo = Alphabet Inc Logo 2015.svg
DeepMind
| logo_alt = The letters of "Alphabet" colored in red
Google
| image = Googleplex HQ (cropped).jpg
Google Fiber
| image_size = 260px
GV
| image_caption = [[Googleplex]], home to Alphabet Inc., in Mountain View, California
Intrinsic
| trading_name = Alphabet
Isomorphic Labs
| type = [[Public company|Public]]
Verily
| traded_as = {{ubl|
Waymo
* {{nowrap|[[Nasdaq]]: {{NasdaqSymbol|GOOGL}} (Class A)}}
Wing
* {{nowrap|Nasdaq: {{NasdaqSymbol|GOOG}} (Class C)}}
X Development
* {{nowrap|[[Nasdaq-100]] components (A & C)}}
Website|num_employees=Decrease 181,798 (June 2023)|revenue=Increase US$282.8 billion (2022)|operating_income=Decrease US$74.84 billion (2022)|net_income=Decrease US$59.97 billion (2022)|assets=Increase US$365.3 billion (2022)|equity=Increase US$256.1 billion (2022)|products=Artificial intelligence
* {{nowrap|[[S&P 100]] components (A & C)}}
Automation
* {{nowrap|[[List of S&P 500 companies|S&P 500]] components (A & C)}}
Autonomous cars
}}
Biotechnology
| ISIN = {{Unbulleted list|{{ISIN|sl=n|pl=y|US02079K3059}}|{{ISIN|sl=n|pl=y|US02079K1079}}}}
Cloud computing
| industry = [[Conglomerate (company)|Conglomerate]]
Computer hardware
| founded = {{Start date and age|2015|10|02}}
Corporate venture capital
| founders = {{Unbulleted list
Fiber to the x
| [[Larry Page]]
Health care
| [[Sergey Brin]]
Internet
}}
Robotics
| hq_location = [[Googleplex]]
Software|key_people=Larry Page (board member)
| hq_location_city = [[Mountain View, California]]
Sergey Brin (board member)
| hq_location_country = U.S.
John L. Hennessy (Chairman)
| area_served = Worldwide
Sundar Pichai (CEO)
| key_people = {{Unbulleted list
Ruth Porat (CFO)|ISIN=US02079K3059
| Larry Page (board member)
US02079K1079|traded_as=Nasdaq: GOOGL (Class A)
| Sergey Brin (board member)
Nasdaq: GOOG (Class C)
| [[John L. Hennessy]] ([[Chairman]])
Nasdaq-100 components (A & C)
| [[Sundar Pichai]] ([[CEO]])
S&P 100 components (A & C)
| [[Ruth Porat]] ([[CFO]])
S&P 500 components (A & C)|type=Public}}
}}
| products = {{Plainlist|
* [[Artificial intelligence]]
* [[Automation]]
* [[Autonomous car]]s
* [[Biotechnology]]
* [[Cloud computing]]
* [[Computer hardware]]
* [[Corporate venture capital]]
* [[Fiber to the x]]
* [[Health care]]
* [[Internet]]
* [[Robotics]]
* [[Software]]
}}
| revenue = {{increase}} {{US$|282.8 billion|link=yes}}
| revenue_year = 2022
| operating_income = {{decrease}} {{US$|74.84 billion}} (2022)
| net_income = {{decrease}} {{US$|59.97 billion}} (2022)
| assets = {{increase}} {{US$|365.3 billion}} (2022)
| equity = {{increase}} {{US$|256.1 billion}} (2022)
| num_employees = {{Decrease}} 181,798
| num_employees_year = June 2023
| subsid = {{Plainlist|
* [[Calico (company)|Calico]]
* [[CapitalG]]
* [[DeepMind]]
* [[Google]]
* [[Google Fiber]]
* [[GV (company)|GV]]
* [[Intrinsic (company)|Intrinsic]]
* [[Isomorphic Labs]]
* [[Verily]]
* [[Waymo]]
* [[Wing (company)|Wing]]
* [[X Development]]
}}
| owners = {{Plainlist|
* Larry Page (controlling shareholder)
* Sergey Brin (controlling shareholder)
}}
| website = {{URL|https://abc.xyz/}}
| footnotes = <ref name=Annual10K2022>{{cite web |title=Alphabet Inc. 2022 Annual Form 10-K Report |url=https://www.sec.gov/ix?doc=%2FArchives%2Fedgar%2Fdata%2F1652044%2F000165204423000016%2Fgoog-20221231.htm |publisher=[[U.S. Securities and Exchange Commission]] |date=3 February 2023 |access-date=April 3, 2023 |archive-date=March 17, 2023 |archive-url=https://web.archive.org/web/20230317154148/https://www.sec.gov/ix?doc=%2FArchives%2Fedgar%2Fdata%2F1652044%2F000165204423000016%2Fgoog-20221231.htm |url-status=live }}</ref>
}}


Alphabet Inc. is an American multinational technology company that is headquartered in California. The company was founded in late 2015 and later evolved into the parent company of Google and other former Google subsidiaries. Today, it stands as one of the largest technology companies in the world, ranking as the third-largest by revenue.
== Summary ==


Alphabet's financial reporting is structured into three main segments: Google Services, Google Cloud, and Other Bets. The Google Services segment comprises key revenue-generating products such as Google Search, YouTube ads, and the Google network. These platforms have been instrumental in establishing Google's dominance in the online search and advertising market. The Google Cloud segment focuses on earnings derived from Google's cloud computing platform, which offers a wide range of cloud-based services to businesses and organizations. Additionally, this segment includes Google Workspace, a suite of productivity and collaboration tools tailored for enterprises. The third segment, Other Bets, encompasses a diverse portfolio of companies that Alphabet has acquired over the years. Some notable names within this category include DeepMind, a leading AI research lab; Wing, a company focused on drone delivery; Calico, a life sciences company aiming to tackle aging and diseases; and Waymo, a pioneering autonomous vehicle technology company.
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment offers products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.


With its subsidiaries and diverse business ventures, Alphabet has solidified its position as a global technology powerhouse, constantly innovating and contributing to various industries. As the parent company of Google and its various endeavours, Alphabet continues to play a crucial role in shaping the future of technology and its impact on society.
== About the Company ==
Alphabet Inc. is an innovative technology company looking to change the future with revolutionary ideas. Alphabet owns a series of companies including Google, Waymo, X lab, Calico, Wing and more, spreading its wings to technology, transportation, and biology. One of their main goals is to “organize the world’s information and make it universally accessible and useful” and since 2015, they have been transforming the world with their life-changing technologies and innovations.
== Operations ==
Working from their dorm rooms two Stanford University students, Sergey Brin and Larry page, built a search engine called Backrub that used links to determine the importance of individual pages on the World Wide Web. It ranked web pages better than any of its competitors and so within a few years managed to outperform the competition.
In August 1998, Sun co-founder Andy Bechtolsheim wrote Larry and Sergey a check for $100,000, and Google Inc. was officially born. With this investment, the newly incorporated team made the upgrade from the dorms to their first office.
=== Google ===
Google is the core business of Alphabet and accounts for the majority of its revenue. Google's products and services include:
* Google Search  - most well known for the search engine, income is generated through the use of advertisements that are displayed when the user makes relevant searches. – prices can vary for advertisers depending on the industry that is being advertised, for example a legal client will be more profitable for a firm than someone looking to buy fitness equipment so the cost per click will vary drastically.  
* Youtube – A video sharing site that is also one of alphabets most valuable assets. Again revenue is generated through the use of advertisements in a similar way to the Google search however instead short video adverts are played before/during a video.
* Gmail
* Google Workspace
* Google Cloud is a state-of-the-art cloud computing platform that provides a wide range of services, such as virtual machines for flexible computing power, scalable storage solutions to securely manage data at any scale, AI and ML applications to drive data-driven decision-making and innovation, and data analytics tools for extracting valuable insights. This comprehensive suite of offerings empowers businesses to enhance efficiency, streamline operations, and achieve secure and scalable growth in the digital landscape. – prices vary depending on the features the customer is using however are generally in the range of about $10 per user per month
* Android – A mobile/tablet operating system that currently controls 70% of the global market share in the mobile OS market. Revenue is generated through android apps and services which introduce users into the google ecosystem.
=== Other Bets ===
Other Bets is a group of businesses that are still in the early stages of development. These businesses include:
Calico (longevity research)
Verily (life sciences)
Waymo (self-driving cars)
Wing (drone delivery)
CapitalG (venture capital arm)
GV (venture capital arm)
=== Online advertising ===
Alphabet generates the majority of its revenue from online advertising. The company's advertising products and services allow businesses to reach a large audience of potential customers.
=== Cloud computing: ===
Alphabet's Google Cloud Platform is a leading cloud computing platform that offers a wide range of services to businesses of all sizes.
=== Hardware: ===
Alphabet designs and manufactures a variety of hardware products, including the Pixel phone, the Nest smart home products, and the Fitbit fitness tracker.
=== Research and development: ===
Alphabet invests heavily in research and development. The company's research teams are working on a variety of projects, including artificial intelligence, self-driving cars, and renewable energy.
=== Total Addressable Market: ===
Because Alphabet participates in a diverse range of markets, the total addressable market sums up to be more than $650 billion. Google’s digital marketing ~$500 billion, Waymo’s autonomous vehicles ~$120 billion, Calico genetics ~$7.4 billion, and many more companies under Alphabet.
=== Serviceable Available Market: ===
The serviceable available market is more than $475 billion. Google is the market leader for search engines and shares 85% of the market, $425 billion. Waymo also adds another $50 billion in autonomous vehicles, having only Tesla as a major competitor, and other smaller autonomous vehicle companies.
=== Serviceable Obtainable Market: ===
Google is already the market leader for search engines and the serviceable obtainable market is $425 billion. Waymo’s currently estimated valuation is $30 billion, Calico $20 billion. This sums up to be an estimate of $456 billion with its biggest 3 companies.
=== Competitions: ===
The design of goods and services directly relates Alphabet Inc.’s operations management to the competitive landscape. Products compete against information technologies and online services from other companies. For example, Google Search competes with Microsoft Bing. Also, through Google, Alphabet competes with Apple’s cloud services, consumer electronics, App Store, HomePod, and Siri; Facebook’s social media and digital advertising; eBay’s marketplace advertising; Amazon’s cloud services, Alexa, and consumer electronics; and Samsung’s consumer electronics and Bixby. Other Alphabet competitors include Disney, Netflix, and Sony, which compete with Google’s (and YouTube’s) digital content distribution or video streaming. Moreover, Uber competes with Waymo, which was a self-driving technology project under Google and is now a subsidiary of Alphabet Inc. These competitors affect the technology company’s product design. Thus, the competitive landscape influences this strategic decision area of operations management at Alphabet Inc.
== Leadership ==
* '''Board of Directors''': John LeRoy Hennessy (Chairman), Sundar Pichai (Chief Executive Officer & Director), Lawrence E. Page (Director)
* '''Executives''': John LeRoy Hennessy (Chairman), Ruth M. Porat (Chief Financial Officer & Senior Vice President), Sundar Pichai (Chief Executive Officer & Director), Robert M. Califf (Head-Strategy & Policy), Torrence N. Boone (Vice President-Global Client Partnerships), Jewel Burks Solomon (Head-Google for Startups)[https://www.wsj.com/market-data/quotes/GOOG/company-people]
'''John LeRoy Hennessy'''
John LeRoy Hennessy holds the position of Chairman on the Board of Directors at Alphabet. Currently, he hold other board membership at Gordon & Betty Moore Foundation, Alphabet, Inc., Chan Zuckerberg Biohub. He is the founder of Qualcomm Atheros, Inc. and MIPS Technologies, Inc. In the past Dr. Hennessy was Chairman for Qualcomm Atheros, Inc., President at Stanford University and Dean at Stanford University School of Engineering. He received a graduate degree and a doctorate from Stony Brook University and an undergraduate degree from Villanova University.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/121037581]
'''Lawrence E. Page'''
Lawrence E. Page cofounded Google in 1998 with fellow Standford Ph.D student Sergey Brin. With Brin, he invented Google’s PageRank algorithm, which is the foundation of the search engine. He stepped down as CEO of Alphabet. His current board memberships are National Academy of Engineering, X PRIZE Foundation, Alphabet, Inc..[https://www.forbes.com/profile/larry-page/?sh=47b38e947893]
'''Ruth M.Porat'''
Ruth M.Porat is a a Chief Financial Officer & Senior Vice President at Alphabet, Inc., a Chief Financial Officer & Senior Vice President at Google LLC. Ms. Porat was previously employed as a Vice Chairman by The Economic Club of New York and a Chief Financial Officer & Executive Vice President by Morgan Stanley. She received her undergraduate degree from Stanford University, a graduate degree from London School of Economics & Political Science and an MBA from The Wharton School of the University of Pennsylvania.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/65768385]
'''Sundar Pichai'''
Sundar Pichai is Chief Executive Officer & Director at Alphabet, Inc. and the Founder of Pie.co Pte Ltd. He received a graduate degree from Stanford University, an undergraduate degree from Indian Institute of Technology Kharagpur and an MBA from The Wharton School of the University of Pennsylvania.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/4008809]
'''Robert M.Califf'''
Rober M. Califf is a Head-Strategy & Policy at Alphabet. Currently, he is also a Commissioner of US Food & Drug Administration, a Vice Chancellor-Clinical & Translational Research at Duke University Medical Center, and a Member at National Academy of Medicine (United States). He also served on the board at Centessa Pharmaceuticals Plc, Duke Translational Medicine Institute, Nitrox LLC and Proventus, Inc. He received his undergraduate degree from Duke University School of Medicine and a doctorate degree from Duke University School of Medicine.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/117508740]
'''Torrence N. Boone'''
Torrence N. Boone is the Vice President of Google LLC and Vice President-Global Client Partnerships at Alphabet, Inc. Currently, he is also the board of Macy's, Inc., Pond5, Inc. and The Joyce Theater Foundation, Inc.. In the past, Mr. Boone occupied the position of Senior Manager at Bain & Co., Inc., Chief Executive Officer for Enfatico LLC, President of Digitas, Inc. and VP & General Manager-Digital Marketing Agency at Razorfish LLC. He received an undergraduate degree from Stanford University and an MBA from Harvard Business School.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/99086642]
'''Jewel Burks Solomon'''
Jewel Burks Solomon is a Head-Google for Startups at Alphabet, Inc.. She is currently Managing Partner at Collab Capital LLC, Managing Director at Burks Enterprises, Inc., and Managing Director at Storehouse 3:10 Ventures LLC and on the board of 5 other companies. She received an undergraduate degree from Howard University.[https://www.wsj.com/market-data/quotes/GOOG/company-people/executive-profile/201019026]
== Financials ==
=== Income Statement: ===
{| class="wikitable"
!Year
!Revenue (in millions USD)
!Cost of Revenue (in millions USD)
!Gross Profit (in millions USD)
!Operating Expenses (in millions USD)
!Operating Income (in millions USD)
!General & Administrative Expense (in millions USD)
!Other Operating Expenses
!Interest Income
!Interest Expense
!Pretax Income
!Income Tax
!Net Income
|-
|2022
|280,875
|126,203
|154,672
|81,791
|72,881
|42,291
|1,304
|1,817
|357
|76,033
|11,356
|59,972
|-
|2021
|257,488
|110,939
|146,549
|67,984
|78,565
|42,291
|1,089
|1,499
|346
|76,033
|14,701
|61,332
|-
|2020
|182,350
|84,732
|97,618
|56,571
|41,047
|36,422
|90
|1,865
|135
|40,269
|7,813
|34,343
|-
|2019
|161,402
|71,896
|89,506
|54,033
|35,473
|28,998
|111
|1,730
|100
|36,231
|5,282
|30,949
|-
|2018
|136,958
|59,549
|77,409
|45,878
|31,531
|28,015
|90
|5,394
|114
|28,335
|4,274
|24,061
|}
=== Balance Sheet: ===
{| class="wikitable"
!Year
!Total Assets
!Current Assets
!Non-Current Assets
!Total Liabilities
!Current Liabilities
!Long-Term Liabilities
!Total Equity
|-
|2022
|1,086,197
|400,771
|685,426
|429,283
|297,256
|132,027
|656,914
|-
|2021
|1,022,081
|390,586
|631,495
|447,545
|272,405
|175,140
|574,536
|-
|2020
|804,833
|331,452
|473,381
|422,099
|260,279
|161,820
|382,734
|-
|2019
|713,006
|304,222
|408,784
|415,289
|254,999
|160,290
|297,717
|-
|2018
|621,222
|278,167
|343,055
|387,489
|232,002
|155,487
|233,733
|}
=== Cash Flow ===
{| class="wikitable"
!Year
!Cash Flow from Operating Activities
!Cash Flow from Investing Activities
!Cash Flow from Financing Activities
!Net Change in Cash and Cash Equivalents
|-
|2022
|76,033
| -27,494
|56,361
|60,302
|-
|2021
|61,332
| -30,048
|49,884
|70,408
|-
|2020
|40,269
| -32,459
|29,250
|6,800
|-
|2019
|36,231
| -25,221
|15,227
|32,338
|-
|2018
|28,335
| -24,889
|6,741
|3,795
|}
== Valuation ==
=== DCF valutaion ===
{| class="wikitable"
|+DCF valuation with USD
!
!2022A
!2023E
!2024E
!2025E
!2026E
!2027E
!Terminal Value
|-
|Free Cash Flow
|47,955,749,720
|37,096,789,333
|41,414,172,250
|45,969,731,197
|51,026,401,629
|56,639,305,808
|815,303,277,185
|-
|Discount Factor
|
|1.09
|1.19
|1.30
|1.42
|1.54
|1.54
|-
|WACC
|9.086%
|
|
|
|
|
|
|-
|Present Value
|
|34,006,931,940
|34,802,564,130
|35,413,214,474
|36,034,579,369
|36,666,846,813
|527,806,616,702
|}
Made an assumption: perpetuity growth rate is 2%
{| class="wikitable"
|+Results of DCF valuation
|Intrinsic Value
|704,730,753,429
|-
|Shares Outstadning
|5,800,000,000
|-
|Intrinsic Value per share
|121,51
|-
|Current Share price
|130.42
|-
|% difference
| -6.84%
|}
<ref>https://finance.yahoo.com/quote/goog/key-statistics/</ref> <ref>https://valueinvesting.io/GOOGL/valuation/wacc</ref> <ref><nowiki>https://www.wsj.com/market-data/quotes/GOOG/financials</nowiki></ref>
=== '''Sensitive Analysis''' ===
{| class="wikitable"
|+Table. WACC & Perpetuity Growth
!
!
! colspan="4" |Perpetuity Growth
|-
!
!
!1.00%
!1.50%
!2.00%
!2.50%
|-
| rowspan="5" |WACC
|8.0%
|121.720
|129.223
|137.976
|148.321
|-
|8.5%
|115.639
|122.171
|129.709
|138.503
|-
|9.086%
|109.469
|115.090
|'''''121.505'''''
|128.893
|-
|9.5%
|105.623
|110.713
|116.482
|123.074
|-
|10%
|101.450
|105.995
|111.108
|116.903
|}
{| class="wikitable"
|+Table. Sensitivity
!WACC
!Fair Value
!% Change of WACC
!% Change of Fair Value
!Sensitivity
|-
|8.000%
|134.310
|
|
|
|-
|8.500%
|126.505
|6.25%
| - 5.81%
| - 0.9297
|-
|9.086%
|118.739
|6.89%
| - 6.14%
| - 0.8905
|-
|9.500%
|113.973
|4.56%
| - 4.01%
| - 0.8810
|-
|10.000%
|108.864
|5.26%
| - 4.48%
| - 0.8517
|}
== Comparable Company Analysis ==
In the realm of tech competition, Alphabet Inc. leads through Google, but rivals like Yahoo and Microsoft Bing vie for a spot. Yahoo's $41 million market value and Microsoft Bing's $182,432.5 million showcase their efforts. Yet, Google dominates with a market value of $704,740.8 million, a testament to its digital supremacy.
Alphabet's impact goes beyond Google, encompassing innovative subsidiaries like Waymo in self-driving tech, Calico in biotech, and Wing in drone delivery. These ventures shape diverse industries and set the course for our technological future.


== Risks ==
== Risks ==
Line 571: Line 87:
# The trading price for its Class A stock and non-voting Class C stock may continue to be volatile.
# The trading price for its Class A stock and non-voting Class C stock may continue to be volatile.


== References ==
__INDEX__
__INDEX__
# https://finance.yahoo.com/quote/GOOG/financials?p=GOOG
# https://abc.xyz/
# [https://finance.yahoo.com/news/digital-advertising-marketing-global-market-160800132.html#:~:text=The%20global%20market%20for%20Digital,the%20analysis%20period%202022%2D2030. https://finance.yahoo.com/news/digital-advertising-marketing-global-market-160800132.html#:~:text=The%20global%20market%20for%20Digital,the%20analysis%20period%202022%2D2030.]
# [https://www.precedenceresearch.com/autonomous-vehicle-market#:~:text=According%20to%20Precedence%20Research%2C%20the,35%25%20from%202023%20to%202032. https://www.precedenceresearch.com/autonomous-vehicle-market#:~:text=According%20to%20Precedence%20Research%2C%20the,35%25%20from%202023%20to%202032.]
# [https://www.grandviewresearch.com/industry-analysis/genetic-testing-market-report#:~:text=The%20global%20genetic%20testing%20market,22.0%25%20from%202023%20to%202030. https://www.grandviewresearch.com/industry-analysis/genetic-testing-market-report#:~:text=The%20global%20genetic%20testing%20market,22.0%25%20from%202023%20to%202030.]
# [https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/#:~:text=Global%20market%20share%20of%20leading%20desktop%20search%20engines%202015%2D2023&text=As%20of%20March%202023%2C%20online,market%20share%20was%202.44%20percent. https://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/#:~:text=Global%20market%20share%20of%20leading%20desktop%20search%20engines%202015%2D2023&text=As%20of%20March%202023%2C%20online,market%20share%20was%202.44%20percent.]
# https://seekingalpha.com/article/4544631-googles-other-bet-a-deep-dive-into-waymo
# https://www.stock-analysis-on.net/NASDAQ/Company/Yahoo-Inc/DCF/Present-Value-of-FCFF
# https://www.alphaspread.com/security/nasdaq/msft/summary
<references responsive="0" />
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