Analysts Keep Predicting Alphabet Demise Despite Continuous Stellar Performance

Google’s parent company Alphabet just posted a stunning quarterly performance, with revenue at $26 billion. However, it would seem that analysts in Wall Street and investors are still riding the company and churning out predictions of its failure with almost malicious glee. It would seem that a lot of this has to do with Alphabet’s biggest source of revenue being the ads from Google and other branch companies operating at a loss.

A good example of Wall Street’s disdain for Alphabet is a recent piece by Bloomberg on the company’s quarterly report, saying that Google is riding a “one-trick pony.” The piece then proceeded to warn that Google is basically on borrowed time, with investors poised to feel the brunt of the impact once the company collapses.

The publication spells out what it believes is the likely scenario of Google’s demise, saying how the increase in the use of mobile devices will lead to fewer instances of visiting the company’s main search page. With the existence of smart assistants like Apple’s Siri and Amazon’s Alexa, getting answers is just a matter of activating voice command without typing up the query in any search box.

Of course, this is all just speculation at this point since Bloomberg itself admits that there is no evidence that Google’s main revenue source is going the way of the dinosaurs. In fact, according to the publication’s own data, the company’s quarterly performance outpaces the usual net revenue growth of 13 percent year over year that most other brands are able to achieve.

Even so, it would seem that Wall Street is not feeling enthusiasm about Alphabet surpassing analyst estimates since the company’s stocks were down 2.5 percent when the markets closed, Quartz reports. The earnings share underperformance is pinned is one of the likely causes of the slip since investors expected $9.61, but instead got $9.36.