Is Facebook Repeating Alphabet's Biggest Mistake?
In 2015, Google announced it would rebrand as Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), signaling the company's intentions to be more than just a suite of ad-driven products. Investors cheered the move, sending the stock up 4%, and Google management said the decision was modeled after Warren Buffett's Berkshire Hathaway, designed to create a conglomerate of thriving tech businesses.
Google split Alphabet into two primary segments: Google, which included its ad businesses including YouTube and Google-branded hardware; and other bets, which was made up of "moonshots" like autonomous vehicle start-up Waymo that aimed to solve some of the world's biggest problems.
At the time of the announcement, investors envisioned a tech behemoth dominating a wide range of industries beyond search. However, that hope hasn't been borne out. In 2021, Google lost $5.3 billion in other bets and made just $753 million in revenue in the segment.
Source Fool.com
