Why Alphabet Stock Jumped Today
A high-profile activist hedge fund is calling on Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) to aggressively cut costs and dump some of its money-losing units. Shares of the Google parent got a quick boost from the push, trading up as much as 4.6% by midday Tuesday.
Alphabet is famous for its "other bets," which tend to be more speculative enterprises that are subsidized by the company's core search and advertising operations. Some amount of investment in the future is part of Alphabet's DNA, but in recent years the company has taken a closer look at some of the bigger money losers among its ventures.
TCI Fund Management, a London-based investment fund with a history of pressing companies to change the way they operate, would like to see some of that speculation reined in. In a letter to Alphabet management, TCI managing director Christopher Hohn urged the company to cut costs and rethink investment in areas including self-driving software maker Waymo.
Source Fool.com
