RV Capital’s Robert Vinall asserts that a high majority of people tend to question Alphabet’s capital allocation. However, he believes that “its track record is virtually blemishfree. YouTube, Android, Chrome, and Maps are just a few of its home runs”. RV Capital also discusses the existing concerns about Alphabet’s expenditures on unbelievable projects, saying that “Larry Page often says that he does not understand Wall Street’s concern that Google will spend too much on moon shots. His concern is finding sufficient opportunities to avoid spending too little”. Furthermore, despite the fact that the investment firm believes that the shares of Alphabet can greatly benefit over a short-term spectrum from a potential share buyback program, it still believes that Larry Page and his team are doing the right thing by deploying capital into the bounty of ongoing projects.
Certainly, the freshly-restructured Alphabet Inc. (NASDAQ:GOOG) will give more room to the smaller and riskier businesses to develop their own personality or identity. At the same time, this move is likely to increase transparency, as the company’s management intends to implement segment reporting for its fourth quarter financial report. Market participants may also get the chance to track the costs of some of Alphabet’s projects, while the holding company would be able to spin-off some of its experimental businesses without too much fuss. In the meantime, Alphabet keeps buying more businesses. Just recently, the tech giant acquired Divshot, a startup for app developers, in an attempt to attract more programmers to its cloud computing platform. As a result, the team behind Divshot is set to join Firebase, which is Alphabet’s developer-focused app development platform. All in all, it appears that there is more upside for Alphabet’s shares and its business in general, so make sure that you keep a close eye on the tech company and its future developments.