Could This Under-the-Radar Business Take Alphabet's Stock to the Next Level?
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is best known as the parent company of massive search platform Google. The Google search business has a dominant share of its market, and there's also the popular Gmail, Google Maps, Chrome, Android, and Google Play products that are a part of the Google ecosystem as well. There's also YouTube. Collectively, all of these are known as the Google Services segment of the business.
The bulk of the revenue from Google Services comes from advertising, although there are some non-ad revenue streams as well. For example, Google sells smart home products under its Nest brand, YouTube has premium subscription offerings, and the company gets income from Google Play in-app purchases. In all, Google Services makes up nearly 90% of the company's revenue.
The other major segment of the business is Google Cloud. This is the side of the business that provides collaboration tools and cloud infrastructure, primarily for enterprises. Google Cloud mainly generates subscription revenue and is a relatively small piece of the business when compared with the massive Google Services segment, making up roughly 10% of the revenue.
Source Fool.com
