For a company that seems to have been given ‘Buy’ ratings by everyone who’s anyone, it was a comical last month to see the price of Alphabet Inc shares, the parent company of Google, take a rather steep nose dive between the 2rd February and 5th February from $764 to $683. While market news and market news and spread betting sites seemed to enjoy this hiccup, the explanation was seemingly that co-founder Larry Page decided to sell off some 33,332 shares over the period of 1st Feb to 3rd Feb, for a cool $50million, that logically fluctuated the share price.
While the share price has not yet recovered from this recent setback, with target prices ranging between $900 and $1001 set by several major industry players and better than expected quarter earnings, it is unlikely that Alphabet Inc is likely to stay in the $600’s for long. It may even be worth a quick scan of the best Spread betting sites like Capital Spreads to see if you can make a quick buck on its re-ascension.
But the month of February seemed to contain yet more unexpected news for Google, as the company behind the driverless car that claims to have racked up over 1.4million miles of autonomous driving, had a bit of a fender bender. Apparently, while pulling out of a junction in front of a bus that the system has anticipated would stop, it miscalculated what most humans know – that bus drivers are more likely to run you over than let you push in front of them – and subsequently crashed.
However, while cynics of the company and project were hoping to read about huge pile-ups or mass destruction, the comical side of it emerged when the details of the crash were released to the public. The autonomous vehicle had been pulling at a record-breaking snails’ pace of under 2mph which is slower than the speed that Seasons travel!
While the damage to both vehicles may have been innocuous, there was a widespread fear that the crash could damage Google’s ability to retain the positive news it had been given just days earlier by the US National Highway Traffic Safety Administration, that it was likely to receive the same legal benefit as a car with a driver behind the wheel. To date, there has been no talk of this happening and it seems unlikely that it will as this was an isolated incident.
So what will March contain in terms of fun for the employees of Alphabet Inc and Google? Well a mid-Feb announcement by the Google co-founders that they planned to continue their plan to sell some $4.4billion of stock while still retaining 52% of the voting rights within the company.
Are we therefore likely to see the stock price stay lower as the shares are sold off in hordes or will it bounce back as investors predict? Will Google cars carry on driving unscathed or will this be the start of a series of comically unfortunate errors? Only time can tell – so keep reading our site for more updates.