Alphabet to Report "Moonshot" Costs

Alphabet to Report
Today (Feb 1) marks the first time Google's new parent company, Alphabet, will reveal its "moonshot" spending.

Last week, fourth quarter and full-year 2015 earnings reports from various companies were revealed and this week is no different. On Monday, Alphabet is expected to reveal its fourth quarter and full-year 2015 earnings report, including spending on its ambitious "moonshot" projects. Last week, Alphabet prefaced its earnings report with a blog post titled: "Getting ready for segment reporting." In this post, Amie Thuener, Alphabet's Chief Accountant, explained that the company would be revealing two reported segments: Google and Other Bets. "First, we will disclose our new 'Google' segment which includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as Chromecast, Chromebooks and Nexus. Our technical infrastructure and newer efforts like Virtual Reality also remain in Google," wrote Thuener. "Second, our other businesses will be combined and disclosed as 'Other Bets', which includes Access/Google Fiber, Calico, Nest, Verily (formerly Google Life Sciences), GV (formerly Google Ventures), Google Capital, X (formerly Google [X]) and other initiatives."

Ahead of Alphabet's report, Wall Street analysts predict that the company will post fourth quarter revenue of $21 billion, and earnings of $8.09 per share. While the company is expected to post gains, the "Other Bets" section is expected to post losses. A whopping 72 percent of investors expect "Other Bets" lost more than $1.5 billion in 2015, according to a Raymond James survey. "We believe revenues from Other Bets will be fairly immaterial for Alphabet given the early stages of most of these businesses," said Raymond James analysts. Alphabet has yet to reveal its report at the time of writing.

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