Alphabet to give first peek at cost of ‘moonshot’ bets

How much is Google-parent Alphabet Inc spending on “moonshots” – self-driving cars, glucose-monitoring contact lenses, Internet balloons and other ambitious projects? Investors will get their long-awaited answer when Alphabet reports fourth-quarter results after markets close on Monday. The report will be the first time Alphabet will break out results for what it calls “Other Bets”, which includes Google Fiber; smart home accessory maker Nest Labs and the secretive “X”, home to the self-driving cars project.

For the first time they (Alphabet) have a real catalyst to the stock, aside from a standard beat-and-raise.

James Cakmak, an analyst at Monness, Crespi, Hardt & Co Inc

A Raymond James survey showed that 72 per cent of investors expect “Other Bets” lost more than $1.5 billion in 2015. "We believe revenues from Other Bets will be fairly immaterial for Alphabet given the early stages of most of these businesses,“ Raymond James analysts wrote in a note. To be sure, almost all of Alphabet’s revenue comes from its Google unit. Analysts on average are expecting Alphabet’s profit to rise to $8.10 per share from $6.88 and revenue to rise 14.7 percent to $20.76 billion, according to Thomson Reuters I/B/E/S.

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