Core advertising business is still strong, alphabet is the next growth point hardware




Alphabet recently released the 2016 fiscal first quarter results, because the tax rate increase, the profit of less than expected data.

, however, only a day later, analysts said, Alphabet core advertising business is still strong, and smart phones and home products also achieved growth.

has at least 11 brokerage company raised its price target Alphabet, they give the median price target of $992.5, representing the company’s Thursday closing price of 15.8%.

investment bank Jefferies analyst, said: from the point of view of capital allocation, we appreciate the strategic investment in the field of Alphabet has a promising future, such as Google Assistant and hardware. At the same time, the company also stopped investing in some areas of return, such as fiber business Fiber."

Alphabet is the largest contribution to the advertising revenue business, the growth of 17.4% in the first quarter of the company’s fiscal year 2016 the proportion of up to $22 billion 400 million.

The number of

in the quarter in the past, Alphabet has always stressed that the hardware business and other betting properties, such as broadband, Google Fiber Home Furnishing products Nest, unmanned technology company Waymo and responsible for the development of other institutions are unlikely to achieve X project.

In the third quarter of fiscal year

2016, the operating losses of these bets were narrowed to $1 billion 210 million from $1 billion 90 million over the same period last year, while capital spending increased from $504 million to $193 million a year earlier.

o doshello Mizuho bank analyst Neal (Neil Doshi) said: "Alphabet is used to control the hardware and software, we believe that this is to ensure that the necessary steps Android to provide the best user experience." Doshello Alphabet is expected to have sold about 1 million 500 thousand Pixel intelligent mobile phone, higher than the previously expected 1 million.

doshello said he expected YouTube this year created a revenue of $14 billion to $15 billion, this may be the catalyst Alphabet this year rose.

Alphabet is expected to profit due to doshello slightly decline in 2017, the company’s target price by $1 to $1204.

Alphabet shares rose nearly 17% in the past 12 months.

in the 49 brokerage firms tracking Alphabet, there are 47 to the company to buy or higher rating.