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Android , and other properties . Calico , Alphabet ’ s research company dedicated toward increasing lifespan , has quickly acknowledged new collaborations with scientists and institutions ; however , it has disclosed almost nothing in the way of financial details . In fact , much of Calico ’ s operation is being kept under wraps .
Analysts at Macquarie Securities said this new structure will give investors a better understanding of key metrics driving core Alphabet , but how much of a better understanding is still unknown .
Alphabet continues to trade below its all-time high , even after the restructuring announcement . A new set of divisions , broken out more visibly , will not mitigate the slowing growth of its main business . As Wall Street picks apart the new Alphabet figures , it still will look primarily at the search division . Aside from decelerating revenue growth , the issue of rapid employee additions will be part of the calculation . Investors have been wary of Google ’ s habit of adding thousands of employees a year without saying what these people will do .
Alphabet shares had lagged behind other technology companies for most of the year , until the company reported better-than-expected second-quarter results and signaled plans to rein in spending on ancillary projects .
The decision may not be enough to move the stock much higher . That will depend on the company ’ s slowing revenue , and whether Alphabet can milk that revenue for more profits . On average Alphabet is trading on average moderately below its all-time high , at $ 634 against its top of $ 678 .
Road mapping the future Restructuring and renaming the company so far have not produced a tangible , compelling strategy for the overall enterprise . On the other hand , if this move helps inspire corporate flexibility , the reasons for owning the stock would dramatically improve and increase .
For years analysts and investors have scratched their heads at the company ’ s collection of businesses and ventures because they couldn ’ t see how these reflected or comprised a coherent strategy .
Perhaps now the master plan is beginning to unfold .
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