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Google plans a large stock buyback

With all this cash lying around, Alphabet is planning on buying back shares of its own stock, The Economic Times reported on Friday.

According to the report, high profit which the company had in the third quarter of this year, has prompted it to announce it would give investors some of their money.

"They're growing up," The Economic Times (opens in new tab) cites Colin Gillis, an analyst with BGC Financial.

One of the bigger issues with Google is the fact that it has a lot of companies and firms that are completely unrelated to its core business, like self-driving cars, pharmaceutical companies and whatnot. Those firms, also called "Larry Page’s moonshots”, have had investors questioning how profitable they are and how much the company is really spending on risky business ideas. With Google getting a parent company, and leaving only the core business to itself, the financial results will be clearer.

"Products like Search, Android, Maps, Chrome and YouTube each have over a billion users already, and Google Play crossed that milestone this quarter as well," said Sundar Pichai, Google's new chief executive. "But what's most exciting is that we're just beginning to scratch the surface."

"This is the appetizer, and the main meal comes next quarter when they report the new corporate structure," said Ben Schachter, an analyst with Macquarie Securities.

Typical of a company filled with engineers, the buyback was encased in a riddle, with an exact value of $5,099,019,513.59 — which mirrors the square root of 26, as in the 26 letters of the alphabet.

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.