On Thursday afternoon as the google parent company has officially begun looking into expanding Google Fiber in the Lone Star state. Since then, the shares of Alphabet Inc (GOOGL) have slipped by over 2% by the end of late morning trade today.
Alphabet’s Google unit’s Fiber names Dallas as a ‘potential’ city to expand its high-speed internet service, added to Austin that has the service currently available and San Antonio that is set to lunch in.
Dallas will be the third city in Texas to provide the service, if everything goes according to plan.
The excelling service being provided leaves competitor with a magnitude of challenge before them, as it offers 1,000 Mbps, or 1 Gbps per second, for $70 per month, which is about 100 times faster than any other provider.
Despite being less than that of the internet Software & Services industry average, the net income growth from the same quarter one year ago has enormously exceeded that of the S&P 500. The net income increased by 19.7% when compared to the same quarter one year prior, going from $3,515.00 million to $4,207.00 million.
Taking all the growing revenue in to account, however, according to statistics the company under performed as compared with the industry average of 20.3%. In consideration of the same quarter one year prior, revenue upturned 17.4%. Growth in the company’s revenue appears to have helped advance the earnings per share
Notwithstanding Alphabet Inc’s debt-to-equity ratio of 0.0.4 is very low, it is presently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.99, which clearly demonstrates the ability to cover short-term cash needs.
Alphabet Inc’s gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. Alphabet Inc is extremely liquid. Currently, the Quick Ratio is 4.99 which clearly shows the ability to cover any short-term cash needs.
Positive factors identical to those have mentioned, such as earnings advancements, appears to begun to be recognized by investors. This has been a positive contributing factor driving up the company’s share by a sharp 36.95% over the past year, a rise that has exceeded that of the S&P 500 Index.Regarding the stock’s future course, although almost any stock can fall in a broad market decline, Alphabet Inc should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
Separately, by virtue of leading companies seeking access to new technologies and customer based developments by fresh start-ups in order to increase market share, there’s a growing trend toward industry consolidation.
Recent acquisitions by large and well-capitalized technology companies have altered the competitive landscape. Profitability of individual companies depends largely on volume and efficient operations and small companies compete by serving niche segments or by providing technical expertise.