$Alphabet(GOOGL)$ Have done a bit of reading this morning on what activist investor TCI said in its open letter to CEO Sundar Pichai. Main thing is to cut costs, trim headcount, increase stock buybacks and take care of the shareholders. As a Googl shareholder myself, it is not surprising given the stock has fallen all the way since its stock split earlier this year.
Meta is cutting 13% of its workforce, AMZN is cutting 10,000 workers, about 3%. Even Stripe, Twitter, Microsoft and Salesforce are trimming workers. Given this movement in the industry as a whole, I would be surprised if Googl doesn't follow suit. Further, Google pays its workers about twice above the Silicon Valley median. TCI also raised the point of Googl "incinerating cash" in its other bets segment, which includes Waymo. Its other bets segment generated a revenue of $3 bn after burning $20 bn in the last 5 years. I would expect a bounce in the stock price if Googl does follow through on some of these.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments