Why Alphabet is Its Own Worst Enemy

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) recently became the fourth company to achieve a $1 trillion market cap. It reached this milestone less than 22 years after its founding by dominating the internet in search and branching off into videos, smartphone operating systems, cloud products, and numerous other offerings. Considering all of the applications invented by the company, it may have created one of the more successful research and development outfits in corporate history.

However, its prosperity may have also hindered some of its success. Alphabet's corporate structure may have left some divisions unable to realize their full value. By spinning off divisions, or allowing a breakup to occur, Alphabet could add tremendous value to its shareholders.

The company remains best known for its original product, the search engine. However, Android, YouTube, as well as numerous ventures into other businesses also shape the company. Still, Google Sites, which includes the ad platform that has long driven most of the company's revenue, accounted for more than 70% of Alphabet's revenue as of the last quarter.

Source Fool.com