Comment by cwyers
8 years ago
Alphabet is a company that still makes the bulk of its revenue from advertising, and invests that money in its other ventures. It's not misleading at all to suggest that this project is being funded by advertising revenue.
Sure, Alphabet makes a good chunk of revenue from advertising, and re-invests it. Verily is not an advertising company, even if they get some money from advertising.
Furthermore, Verily has its own profit streams, and isn't doing anything with mosquitos that increasing advertising streams to Google. The projects are unrelated. If I work on software and work and later clean my toilet at home, you wouldn't say the gloves I wear are my IDE and that I'm programming. However, I bought the gloves using money from my software development job.
Look, it's pretty simple.
https://www.cnbc.com/2018/02/02/alphabet-business-units-reve...
Google makes the bulk of its revenue from advertising. Google generates substantial profits. The non-Google parts of Alphabet are, as a group, running at a loss. Google's advertising profits are used to subsidize Alphabet's "other bets."
Yes - you're right. I already understood that, but thanks for the patronizing comment that actually side-steps any point about how Google is not the company fighting mosquitos in California.
Google is busy trying to maximize advertising profits.
Verily is focused in Life Sciences.
Different companies, with different goals. Verily isn't trying to maximize advertising profits for Alphabet.
4 replies →