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Reinvention of the company

The parent company of Google, Alphabet Inc. has joined the “prestigious” $1 trillion market cap club on January 16th, 2020 becoming the fourth corporation to reach this historical mark, after Apple, Amazon and Microsoft accomplished that task throughout the 2018-2019 period.
Google Inc. decided to reinvent the way investors see the company and diversify its operations back in 2015 and this was an important step for the future growth prospects of the company. With Google’s evolution into Alphabet Inc. now the company is much more than just the largest search-engine in the world. Alphabet Inc. is a multi-national technological conglomerate with 8 separate companies operating in 4 different industries: Robotics, Life sciences, Healthcare and Anti-aging. In addition to significantly expanding its operations with this evolutionary step, this was also a very smart move for Google (now Alphabet) from a regulatory standpoint, because now Alphabet as a conglomerate could argue that every single one of the 8 companies under its umbrella is working in a separate field and industry, thus eliminating all possible future conflict of interest or monopoly allegations.

New Management, Long-term growth initiatives, Stock Buybacks

It is important to note that the stock has really taken off after the former CEO of the company Larry Page, as well as his lifelong friend and also co-founder of Google Inc., Sergey Brinn announced that they were stepping down from their key management positions at Alphabet Inc., thus naming Google’s CEO Sundar Pichai as their successor. One of the main drivers for the recent strong appreciation of the stock is associated with the fact that investors believe that the new CEO, Sundar Pichai, will be more open to pick up the pace of the company’s modest stock buyback program, which in turn should be a positive catalyst for the stock price.

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