For Sergey and me this is a very exciting new chapter in the life of Google – the birth of Alphabet. We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for! I should add that we are not intending for this to be a big consumer brand with related products–the whole point is that Alphabet companies should have independence and develop their own brands.
Google has always been a lab full of ideas in various stages of execution, but 99% of revenues always came from the ad business. They can restructure and refocus as much as they want, but the fact is that nothing else will move the needle for investors anytime soon. So I guess the +6% that this breaking news incited after hours will vanish in due course.
Long term, though, Larry and Sergey have all the more reasons to make a mark again.